Norsk Hydro ASA, Norway, reports that Enova, a Norwegian government agency, has decided to contribute $250 million toward Hydro’s full-scale next-generation electrolysis pilot project, which is said to have the potential to significantly reduce energy consumption. The pilot plant is to have a capacity of 70,000 metric tons of aluminum per year, and could begin production in 2017, at the earliest.
Hydro’s technology center in Årdal, Norway, is a global leader in developing new and more energy-efficient electrolysis cell technology. It is this technology that Hydro wants to test in the pilot plant. The project is projected to cost $580 million, of which $250 million would come from Enova. This contribution is subject to approval by the European Free Trade Association’s surveillance authority ESA. “We have been in an application process with Enova over the past year. Hydro’s goal is to realize a groundbreaking new technology that can reduce energy consumption and emissions from Norwegian industry. The support from Enova makes it possible to continue to put all the elements in place before potentially making a final decision on the project and starting construction,” says Hydro President and CEO Svein Richard Brandtzaeg.
Enova will send its decision to ESA for approval. Other conditions that must be in place before Hydro can make an investment decision include that the state power grid company Statnett can ensure that the regional grid can support the industrial growth and planned electrification of offshore energy installations. The company must also be able to secure sufficient electricity at competitive prices. In addition, market conditions for aluminum must indicate a satisfactory profitability outlook.
