Hydro signs a 15-year natural gas sourcing contract with New Fortress Energy for its Alunorte alumina refinery

On Thursday, April 15, Hydro reportedly signed a Memorandum of Understanding (MoU) with New Fortress Energy (NFE) for sourcing natural gas for its Alunorte alumina refinery. The objective is to replace a part of current fuel oil consumption with environmentally friendly energy, aiming at meeting the commitment to reduce greenhouse gas emissions by 30 per cent by 2030.

To switch to natural gas as an energy source at Alunorte, Hydro will modify the calcination process and part of the steam generation. According to the MoU signed, New Fortress Energy will deliver a minimum agreed amount of natural gas to the refinery per annum for a period of 15 years. The supply of liquefied natural gas to the refinery is expected to start in 2022.

The gas is likely to come from an LNG regasification terminal, which is to be located near the Hydro Alunorte refinery in Barcarena. The refinery will be an important gas consumer in the state of Pará and thereby an enabler for LNG installation in the region.

John Thuestad, Executive Vice President for Hydro’s Bauxite & Alumina business area, said: “We are committed to drive sustainability and industry best practices to lower environmental impact from our operations. Hydro is supporting use of LNG and natural gas in the state of Pará. 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.”

Commercial agreements and final documentation between Hydro and New Fortress Energy are, however, still due.