We define our ambition and role in decarbonization based on three pillars:

1. Becoming a net-zero company
2. Deliver zero-carbon aluminum products to customers
3. Enabling the removal of carbon from the broader industry and society through our renewable energy, hydrogen and battery businesses.

Net-zero Hydro

We are on track to reduce our own emissions by 10% by 2025 and 30% by 2030 from a 2018 baseline.

We are committed to net-zero emissions by 2050 or earlier.

Net-zero products

We are developing zero-carbon greener aluminum to meet market expectations and enable customers to reduce their carbon footprint.

Our main pathways to achieving our goals are more recycling of post-consumer scrap aluminum and technological advances in primary aluminum production, such as carbon capture and storage and our proprietary HalZero technology. This is a technology where carbon and chloride are kept in closed loops, resulting in a fully decarbonized process.

In 2022, we produced 100 tonnes of CIRCAL100 from 100% post-consumer scrap with a carbon footprint below 0.5 tonne CO2 per tonne aluminum. This is a significant improvement, compared with the current 2.3 kg CO2/kg aluminum in Hydro CIRCAL extrusion ingot based on 75 percent post-consumer aluminum scrap, and the world average of 16.6 kg CO2/ kg aluminum. Hydro will make key capacity investments over the medium term to ensure our recycling portfolio can facilitate the increasing demand for Hydro CIRCAL.

Net-zero society

• We are reducing greenhouse gas emissions in society at large by delivering climate-friendly solutions.
• We are increasing renewable energy production.
• We are exploring energy storage and solutions.
• We are working to develop green hydrogen to replace fossil fuels.
• We will continue to grow in low-carbon and recycled aluminum.

Milestones

We have established several milestones toward the overall ambition of net-zero carbon emissions by 2050, including a 10% reduction by 2025 and a 30% reduction by 2030 from a 2018 baseline. Through greener sourcing and greener production, we also aim to help our customers in reducing their emissions through greener products.

One of the largest single projects that will help us accomplish our shorter-term goals is by implementing a greener energy mix at our Alunorte alumina refinery in Brazil.

Currently, the refinery uses fuel oil as an energy source. We are replacing this with liquid natural gas transported by ship to the Barcarena harbor. Not only will this help reduce our direct carbon emissions from energy use, it will help develop critical infrastructure that can benefit the entire region of Pará State.

Recycling of post-consumer aluminum scrap and new technology will be the main levers for delivering more low-carbon aluminum.

Technology development for low- or zero-carbon will explore different paths, such as carbon capture and storage, green hydrogen and carbon-free processes, such as our proprietary HalZero technology.