With more than 100 years of experience in hydropower, energy is a core part of Hydro’s business, and our renewable energy footprint is a key differentiator in the aluminum industry.  
 
Today, Hydro is a global sustainability leader in the industry, with the strategic ambition of creating value for all stakeholders.  
 
Our operations are based on long-term perspectives, providing competitive sourcing and optimal energy system solutions. We realize new business opportunities within energy technology where we can leverage on our capabilities and industrial know-how.

Energy vital in Hydro’s value chain

Energy, in several kinds of forms, play a vital role in Hydro’s value chain. About 50 percent of the operating costs of aluminum production are energy related, and power cost is a major cost-differentiating element for aluminum plants around the globe. 

Key to produce low-carbon aluminum 

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 base its electricity on coal leaves a five times larger CO2 footprint than one that base its production on electricity from renewable sources. 

For these reasons, Hydro has a separate Energy business area. On these pages you can find out more about Energy’s operations and our strategy.