Energy, in several forms, is a significant element of Hydro’s value chain. About 50 percent of the cash operating costs of primary aluminum production are energy related, and power cost is a major cost-differentiating element for aluminum plants around the globe.
The low carbon footprint of Hydro’s aluminum is a unique competitive advantage, and it is in large enabled by efficient technology and emission-free power in the aluminum production process.
Because it takes a lot of energy to produce primary aluminum, it is very important to use energy sources that leave a small carbon footprint. An aluminum plant which bases its electricity on coal leaves a CO2 footprint five times larger than one that bases its production on electricity from renewable sources.
On these pages you can find out more about Energy’s operations and our strategy.