Circular and Regional Value Chains for Large Aluminium Structures (CircVal)

Hydro has state-of-the-art primary production facilities in Norway, based on climate and energy-efficient aluminium electrolysis technology, and casting technology from Hycast. Moreover, new alloys such as Circal (75% recycled post-consumer scrap) and Reduxa (made from renewable energy claiming maximum 4.0 kg CO2e per kg aluminium produced) are projected to be combined into the next generation low carbon aluminium alloy. This baseline gives a unique opportunity to extend the regional value chains with capacity for semi-finished goods, metal forming and final assembly of large structures for markets such as; marine, maritime, road and energy infrastructure, fish and aquaculture, oil- and gas etc. Today, such value chains are dispersed or non-existing – and potentially with a non-competitive CO2 footprint. For instance, producing an aluminium ship-panel may start with primary production in China (coal-fired plants), extrusion of profiles in Belgium, Friction stir welding of panels in Sweden, pre-assembly in Poland and final installation in Norway. Integrating all these process steps regionally in Norway, utilizing Norwegian knowledge workers, enabling technology and renewable resources, improves the overall CO2 footprint, product quality, time-to-market and economy. In parallel, it establishes a new and green export industry in Norway based on added value products – not only commodities to be exported at global exchange prices. The opportunities are regarded considerable for this project in terms of penetrating new and existing markets, new technology realization, collaboration modes and establishment of new export industry in Norway based on knowledge intensive jobs. However, the risks connected to these aspects are currently regarded as too high for Hydro alone to mitigate.