Hydro Sign Deal to Purchase land in Spain for the Construction of an Aluminium Recycling Plant

Spain: To build an advanced Aluminium recycling facility, Hydro has signed a contract to buy land in Torija, Spain. The mill will be able to produce 120,000 tonnes of material annually and employ about 65 people directly. By constructing the facility, Hydro will be better able to produce low-carbon Aluminium while ensuring that more scrap is maintained in Europe.

With a division of the Pulsar Properties Group, the deal has been inked. The ultimate facility design, market circumstances, and macroeconomic development will all have an impact on the project's overall investment, which is currently expected to be between EUR 130 and 140 million. By the end of 2023, Hydro hopes to have made a final investment choice.

The markets for Aluminium in Europe and Iberia are still expanding. According to Eivind Kallevik, executive vice president for Hydro Aluminium Metal, this investment will take a significant step towards Hydro's goal of recycling more post-consumer Aluminium, enhancing our position to profit from the rising demand for greener and circular Aluminium.

Due to its special qualities, such as light weight and limitless recyclability without sacrificing quality, Aluminium is highly suited for electric car components, renewable energy installations, and energy efficient building systems.

Keeping post-consumer trash in the loop is essential since Aluminium is infinitely recyclable and recycling uses 95% less energy than primary manufacture. Considering the several crises that Europe is currently experiencing, increased post-consumer recycling presents a chance for Europe to guarantee domestic access to Aluminium, which is a strategic problem.

The demand for Aluminium in Hydro's key markets is anticipated to increase by about 3% annually by 2030, with low-carbon Aluminium demand anticipated to exceed the rest of the market. However, almost 1 million tonnes of recycled Aluminium depart Europe each year.

We hope to go even further into the European scrap heap with the help of our cutting-edge technologies and skilled personnel. This investment will allow us to revitalise more low-value scrap materials as value-added components for building systems, renewable energy applications, and electrical transportation solutions that will propel Europe's green transition, according to Kallevik.

With a CO₂ footprint under 4 kg per kg of Aluminium, the recycling factory in Torija will be able to produce Hydro CIRCAL and other recovered low-carbon Aluminium.

Unique to Hydro, Hydro CIRCAL extrusion ingot has a market-leading CO₂ footprint of only 2.3 kg CO₂e/kg Aluminium and contain at least 75% post-consumer scrap. The Torija project will expand the selection of value-added Hydro goods available on the Iberian market and complement Hydro's factory in neighbouring Azuqueca.