Hydro Capital Markets Day 2024: Accelerating the Green Aluminium Transition

Hydro Advances 2030 Strategy to Accelerate the Green Transition

Hydro is driving forward its 2030 strategy, focusing on growth in aluminium recycling, extrusions, renewable power generation, and sustainability initiatives. These themes will take center stage at Hydro’s Capital Markets Day 2024.

Key Highlights

• Launching a NOK 6.5 billion improvement program targeting 2030.
  
• Strengthening Recycling and Extrusions execution to reconfirm adjusted EBITDA potential by 2030.
  
• Phasing out the Battery and Havrand businesses.
  
• Increasing Hydro REDUXA and Hydro CIRCAL sales by more than 20% in 2024.
  
• Reconfirming annual capex guidance of NOK 15 billion for 2025, with additional flexibility.
  
• Estimating NOK 29 billion working capital by 2024, with further increases in 2025.
  
• Aligning shareholder distribution targets with Hydro’s dividend policy.
  

Hydro’s 2030 strategy, launched a year ago, emphasizes aluminium recycling, extrusions, and renewable energy as pillars for the green transition. Hydro will execute on its decarbonization roadmap, contributing to a sustainable future while creating market opportunities for low-carbon aluminium products.

“Our 2030 strategy sharpens our focus on strategic capital allocation and pushes profitable growth while delivering strong returns to shareholders,” said Eivind Kallevik, President and CEO of Hydro.

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Realigning Growth Priorities

To strengthen its 2030 strategy and address market challenges in the battery and green hydrogen sectors, Hydro will phase out its Battery and Havrand businesses. While no further capital will be allocated, Hydro will continue testing green hydrogen technology at its Høyanger recycling unit for internal decarbonization.

Hydro’s recycling expertise positions it to meet growing demand for low-carbon products. The company expects to reach 700 kt of post-consumer scrap capacity by the end of 2024, advancing toward its 2030 targets of 850–1,200 kt.

Delivering Renewable Energy Growth

The green aluminium transition depends on affordable renewable energy. Hydro Energy is expanding its renewable portfolio with projects like a 650 MW capacity expansion in Røldal-Suldal and a 48 MW Pumped Storage plant in Sogn. Hydro Rein, in partnership with Macquarie, is on track to have 1.7 GW of projects operational by year-end, with 8.4 GW in development.

Decarbonization Milestones

Hydro is advancing its net-zero roadmap by 2050. In 2024, Hydro expects to complete a fuel switch to natural gas at Alunorte, reducing CO2 emissions by 434,000 tonnes annually. The HalZero pilot for CO2-free aluminium production is on track for 2030.

Hydro’s efforts extend to biodiversity initiatives and partnerships with organizations like Mercedes-Benz on projects combining social, nature, and climate benefits.

Commitment to Sustainable Growth

Hydro’s NOK 6.5 billion improvement program targets operational, procurement, and commercial excellence to drive resilience and profitability. Digital transformation efforts like predictive maintenance and production optimization further enhance these initiatives.

Hydro remains committed to sustainable growth and delivering strong shareholder returns, supported by consistent capital allocation and strategic investments.