Hydro signs 15-year contract with New Fortress Energy (NFE) for sourcing natural gas for Alunorte alumina refinery

According to a recent report, Hydro has entered into a 15-year contract with New Fortress Energy (NFE) for the supply of Liquefied Natural Gas (LNG) to the Alunorte alumina refinery in Brazil, as part of the fuel-switch initiative to replace the refinery’s energy sources and reduce carbon emissions. Hydo aims at reducing greenhouse gas emissions by 30 per cent by 2030.

The agreement says the NFE will supply 29.5 TBtu of natural gas annually to Hydro’s Alunorte refinery from its Barcarena LNG receiving and regasification terminal located in the state of Pará, Brazil.

Alunorte will implement the calcination process and part of steam generation at the refinery to switch from fuel oil to natural gas as the energy source. This change is slated to be completed by the first quarter of 2023 and it will reduce the refinery’s annual carbon emissions by 600,000 tonnes.

“Alunorte is among the most energy-efficient alumina refineries in the world. The fuel switch to LNG is another step to improve our operations, driving sustainability and industry best practices to lower environmental impact,” said John Thuestad, Executive Vice President for Hydro’s Bauxite & Alumina business area.

He added, “Access to LNG will enable a more-sustainable operation for Hydro and also give access to natural gas for other industries and consumers in the state of Pará. This is part of our commitment to support local development.”

The agreement will come in to effect after receiving a final nod for the fuel switch project, expected by the end of 2021.