Hydro and NKT join forces to pioneer new frontiers in low-carbon aluminium wire-rod applications

Hydro and NKT have forged a strategic partnership to create an exceptional, low-carbon aluminium power cable value chain to support the growth of Europe's renewable energy grid. The two companies will work closely together on research and development initiatives and product innovations over the next decade leading to 2030.

What the partnership holds

Together, they will pioneer new frontiers in aluminium wire rod applications, aiming to significantly reduce carbon footprints without compromising on the impeccable quality they are known for. These cutting-edge projects will traverse the realms of primary and recycled aluminium sources, ushering in a greener era for the energy landscape of tomorrow.

Despite the swift expansion of renewable energy sources, the looming challenge of outdated and insufficient power grids poses a formidable hurdle to the transition towards sustainability. In the quest to limit global warming to a critical threshold of 1.8 degrees Celsius, recent findings from the independent research and business intelligence firm Rystad Energy suggest a staggering investment requirement.

A colossal USD 3.1 trillion infusion into grid infrastructure is estimated to be imperative before the dawn of 2030. This colossal investment is essential to fortify the backbone of our energy systems, paving the way for a greener and more sustainable future.

"Power cables play a vital role in transmitting and connecting renewable energy, and the power infrastructure segment has a significant potential for increased use of aluminium. Our joint roadmap with NKT will pave the way for aluminium and thereby reduce the embedded carbon in Europe's power grid," said Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal.

Low-carbon aluminium power cables

Leveraging Hydro's cutting-edge technological prowess and precision manufacturing equipment guarantees a steadfast commitment to superior product quality. Employing the world's most advanced and environmentally-conscious aluminium production technology, Hydro sets a benchmark for climate impact and energy consumption efficiency.

As per the International Energy Agency (IEA), the global demand for new or upgraded grids is projected to soar, requiring an astonishing addition or refurbishment of over 80 million kilometres by 2040. This figure is equivalent to the entirety of the current global grid infrastructure. The exceptional conductivity, flexibility, lightweight nature, and cost-effectiveness of aluminium make it an optimal choice for propelling the development of renewable energy grids.

"We are proud to form this strategic partnership with Hydro, a long-term partner. Hydro has a proven track record of delivering low-carbon aluminium and will help us satisfy the growing demand in our industry for solutions with a lower-carbon footprint," stated Will Hendrikx, COO and Deputy CEO at NKT. 

Building upon the success of various pilot initiatives in 2023, NKT is set to integrate Hydro's environmentally conscious aluminium, Hydro REDUXA 4.0, into its medium voltage power cable solutions by 2024. Subsequently, this technology will be incorporated into some of its high-voltage power cables. These cables play an increasingly critical role in facilitating the connection and transmission of renewable energy sources. This strategic move aligns seamlessly with NKT's sustainability objectives, underscoring its commitment to decarbonisation and providing eco-friendly solutions to its clientele.

Optimising the aluminium value chain from mine to cable

Harnessing its integrated value chain, Hydro stands out with its capability to deliver low-carbon aluminium products that boast complete traceability and transparency from the mining stage to the final component. The company is actively advancing towards ambitious carbon reduction targets, aiming for a notable 30 per cent decrease in carbon emissions by 2030. This endeavour will be chiefly propelled by initiatives such as fuel switching and boiler electrification at the Alunorte alumina refinery in Brazil.

In line with Hydro's roadmap leading up to 2030, the company is set to amplify its commitments to technological advancement, expansion of aluminium recycling efforts, and the generation of renewable power. These strategic pillars are pivotal in propelling Hydro's leading-edge aluminium solutions towards a zero-carbon future. The ultimate goal is to develop greener aluminium with zero-net emissions, aiming to achieve this milestone by 2050 or possibly sooner.

"With this collaboration we continue our strategy of entering into long-term partnerships with sustainability leaders in industries that are crucial for the green transition. NKT and Hydro share a focus on reducing our impacts across the value chain from mine to finished power cables. We look forward to collaborating on all emissions scopes to pioneer completely new ways of working. Together we can change the game," says Eivind Kallevik. 

Hydro and NKT are committed partners in pursuit of achieving the lowest conceivable CO2 levels within the aluminium cable value chain. This collaboration extends beyond the manufacturing process to include concerted efforts in reducing emissions linked to warehousing, logistics, and transportation. Furthermore, the partnership aims to explore opportunities for establishing efficient, closed-loop supply chains. The primary focus will be on optimising recycling practices and maximising the utilisation of scrap materials, all with the overarching goal of minimising the environmental footprint of their operations.