Halvor Molland is Senior Vice President of Communication & Public Affairs at Norsk Hydro ASA, a global energy and aluminium company headquartered in Norway.  An experienced journalist, he holds a Master of Science with experience in offshore oil and gas development projects. Molland has extensive experience in the field of international corporate communication.

Previously, Molland served as Press and Information Officer at the Stabilization Force (SFOR) headquarters in Sarajevo, the NATO-led multinational peacekeeping force.

AlCircle: What has been Hydro's journey to produce the first near-zero carbon aluminium at their recycling facility in Clervaux, Luxembourg?

Halvor Molland: Hydro has developed our low-carbon aluminium offerings over the last few years. This includes Hydro CIRCAL, a certified material that contains a minimum of 75 per cent recycled post-consumer aluminium and a carbon footprint of below 2.3 kgCO2/kg aluminium. Our strategy toward net-zero aluminium by 2050 includes three pathways – CCS, zero-carbon production technology and recycling of post-consumer aluminium. The first step towards net-zero is the recycling of 100 per cent post-consumer aluminium, which will give a near-zero aluminium product with a carbon footprint below 0.5 kgCO2/kg aluminium. The challenge is to meet customer specifications with 100 per cent recycled post-consumer aluminium. Our plant in Clervaux, Luxembourg has successfully produced the first batch and customers have already shown interest in this near-zero aluminium product.

AlCircle: Hydro posted a record profitable Q1 2022. Did the fluctuating LME aluminium price create any impact on Hydro?

Mr Halvor Molland: Following the pandemic, demand for aluminium has increased faster than production. This has led to higher LME aluminium prices and consequently a higher income for aluminium producers. We have also seen logistical challenges in some parts of the value chain and adding the Russian invasion of Ukraine has further increased the LME prices.

AlCircle: How has Hydro's aluminium (upstream & downstream) production in Europe been affected by the geopolitical crisis in the region? Any interruptions reported in the supply chain of raw materials?

Mr Halvor Molland: The Russian invasion of Ukraine immediately led to uncertainty in the market, with a corresponding price hike on energy and increasing raw material prices. We have not seen large, direct impacts on the supply chain or in our aluminium production. Hydro does not have business-critical relations that are affected by the situation.

AlCircle: Hydro's investment in the Karmøy aluminium smelter represents both a step towards the production of low-carbon aluminium using hydropower and a way to remain independent from high gas prices. What would you like to comment on this?

Mr Halvor Molland: Hydro continues its development of low-carbon and carbon-free production processes. Karmøy technology pilot was a breakthrough in terms of lower energy consumption, which reduce both energy consumption and carbon emissions. Hydro has renewable energy as the main part of the power supply to our aluminium production. Through the combination of equity hydro-power production and long-term power contracts, we are safeguarding our operations towards shorter-term fluctuations in power prices.

AlCircle: Hydro has announced the decision of no new contract signs with Russian entities. What challenges the global aluminium producer (Hydro) is facing after this announcement?

Mr Halvor Molland: Hydro decided on March 2 not to enter into any new contracts linked to its Russian counterparts. Hydro has already reduced its contractual commitments and is in the process of further reducing the remaining commitments for 2022. Hydro has no employees, operations or investments in Russia. Hydro’s ambition is to not contribute to any activities which may support the continuation of the Russian invasion of Ukraine. We have mapped our total pre-existing contracts with Russian counterparts. The contracts are limited in number, scope and time, and none of these is business-critical.

AlCircle: Why does Hydro intend to offer 100% ownership of Polish recycling firm Alumetal SA?

Mr Halvor Molland: Hydro’s 2025 strategy aims to strengthen Hydro’s position in low-carbon aluminium by investing in recycling. Hydro has set a 2025 strategic ambition to double its recycling of post-consumer scrap (PCS) and to increase annual recycling EBITDA by a range of NOK 0.7 to 1.1 billion by 2025. The use of PCS significantly reduces the CO2 footprint compared to pre-consumer/process scrap as well as primary aluminium.

The transaction announced for the Polish recycler Alumetal is an important step in delivering on the 2025 strategic agenda. Following the acquisition of Alumetal, Hydro will increase the PCS usage by approximately ~150 ktpy, which together with recently announced recycling projects, will enable Hydro to meet its ambition to double PCS usage by 2025.

AlCircle: How did the production curb in China and the non-Hydro aluminium facilities in Europe affect hydro in the long run?

Mr Halvor Molland: Hydro is adjusting its capacities in our operations according to the global supply and demand balance, and the corresponding market situation.