Our opportunities

Our mission is to enable decarbonization and electrification of society and industries by developing and operating renewable energy, by using wind, solar- and hydropower. Energy storage solutions are also necessary for the green transition. Our battery- and hydrogen ventures support society with more flexible use of renewable energy and electrification of the transport sector, enabling energy efficiency and stability of energy supply.

Addressing our opportunities in a responsible way

We acknowledge that no energy production or consumption comes without impact. New renewable energy developments require land use, which can have potential negative implications on nature and communities. These are some of the most important challenges in the energy transition.

Hydro Energy is committed to work according to high standards of social- and environmental responsibility and to have a positive influence where we operate. We shall address and work proactively to reduce the environmental and social impacts of our renewable projects, as well as around our existing hydropower operations.

We also acknowledge that being in the frontline of the renewable energy transition requires that we rely on new and complex supply chains. It is our responsibility to manage these in a transparent and risk-based manner to minimize indirect environmental and social impacts. We work to ensure that due diligence is performed across the entire value chain, and to mitigate any identified risk. As an example, Hydro Energy works actively together with industry associations, nationally and internationally, to address sustainability challenges in the renewable energy sector.

Climate

Whilst producing renewable and emission free energy is the core of what we do, Hydro Energy’s role is to decarbonize Hydro’s industrial activities as well as enabling a wider energy transition for society. As one of Norway’s largest producers of renewable energy, our hydropower operations provide around 10 TWh of renewable energy annually for our Norwegian aluminum production. Globally, our strategy is to continue growing in renewables and cut GHG emissions through Hydro Rein, Hydro’s renewable energy venture. Hydro Rein is a leading provider of renewable energy solutions to industrials, with a diversified portfolio of more than 40 renewable energy projects (wind- and solar) under development in core markets in the Nordics and Brazil, in addition to a significant pipeline of Energy Solutions projects in Europe and North America. 

More renewable energy means that energy systems become increasingly complex, as peaks of energy production will occur when wind, sun- or hydropower production are at maximum, and more flexibility in the energy system is needed. As part of our strategy towards 2030 we seek to add flexibility to the energy system through optimizing our hydropower production. 

In all our hydropower locations we explore opportunities for upgrading and expanding our hydropower operations. In addition, we will look into developing new projects such as pumped storage hydropower. We are also developing energy storage solutions (batteries) and enabling decarbonization through industrial use of green hydrogen.

Despite decarbonization efforts, there are still direct and indirect greenhouse gas emissions (GHG emissions) from operations and construction activities. To take responsibility for our indirect GHG emissions, we work in several ways to identify and reduce our footprint. Hydropower reservoirs may increase natural emissions of methane, a greenhouse gas, due to flooding of land. We work together with research and peers for a better understanding of these methane emissions.

Environment

Land use and land use change, an often-necessary effect of renewable energy developments, pose some of the greatest risks to loss of biodiversity. Hydro Energy is committed to address and reduce our impact to biodiversity. For all new majority owned projects, Hydro Energy is committed to No Net Loss of priority biodiversity features. This includes working according to the biodiversity mitigation hierarchy to avoid, minimize, restore, and compensate our impacts on priority biodiversity features. For new projects, we are also committed to voluntary exclusion zones and shall not develop new projects in UNESCO World Heritage Sites or legally protected areas listed as IUCN category 1-4.

Hydro Energy addresses biodiversity impacts through a scientific approach and we have engaged third-party specialists and research institutions with understanding of impact mitigation. Hydro Energy has established a long-term collaboration with NINA to get support with understanding our impacts and implementing the biodiversity mitigation hierarchy in new projects in Norway.

We have a particular responsibility for the water bodies that we impact in our hydropower operations. We work with rehabilitation- and restoration measures as well as improvement of ecological habitats in the waterways we regulate. We continuously monitor and simulate water levels and adapt the production, which helps mitigate consequences of extreme weather events, particularly flooding.  

As we actively invest in and develop projects in the battery value chain, we also acknowledge the environmental and social impacts from mining, extraction and processing of necessary metals and minerals for battery production.  Circularity is a key to how we approach the business opportunities in the battery sector, and a prerequisite considering the new regulatory requirement in the EU.

Social responsibility

Hydro Energy is working towards a transition to a low-carbon economy that also provides a just transition, where job creation and decent work is ensured. Our aim is to contribute to the development of local communities where we operate. and aims to contribute to the development of local communities where we operate. Hydro’s social ambition - to improve lives and livelihoods wherever we operate, and respecting, supporting and promoting human rights - is shared with Hydro Energy, and we support this by through the following key activities; 

• Successful stakeholder inclusion and dialogue,
• Contribute to internal and external up- and reskilling,
• Continuously work towards more sustainable business practices,
• Ensure transparency and responsible business practices in our supply chain.

In operations

As part of our commitment to respect, support and promote and respecting human rights, we systematically evaluate our potential impacts on society, (people’s rights), local communities and in our supply chain. seeking opportunities for positive effects for interested and affected stakeholder groups. 

In new projects or major investments

Before new projects or expansions are undertaken, we aim to conduct risk-based environmental and social impact assessments when relevant, which include evaluating risks for adverse human rights impacts. We are guided by The International Finance Corporation Performance Standards on Environmental and Social Sustainability, Equator principles and UN Guiding Principles on Business and Human Rights in doing so. Dialogue with affected groups gives input to plans, detailing our environmental and social responsibilities. We strive to act in an open and credible manner, and gather views from interested parties, aiming for a common understanding of the decisions that are made.

The green transition requires materials that are often sourced in regions with lower sustainability standards. Hydro’s renewable energy ventures work to ensure solid due diligence and securing transparency in our supply chains. All direct suppliers are subject to a qualification process, including mapping of human rights related risks such as forced labour. However, due to the many levels of supplies and complex supply chains in the renewables sector, there are inherent high-risk value chains related to sustainability challenges, especially forced labour. We acknowledge that this is a real challenge requiring on-going long-term efforts.