Aluminium and renewable energy company Hydro is investing in building a new wire rod casthouse at its aluminium smelter in Karmøy, Norway. The new facility will supply aluminium for use in critical energy infrastructure in Europe and is expected to start production in 2028.
'This investment will expand the capacity of wire rod to supply our customers with low-carbon solutions needed to develop and expand Europe's most critical infrastructure. This demonstrates that a productive aluminium industry has good growth opportunities in Norway,' says Eivind Kallevik, President and CEO of Hydro.
The wire rod casthouse in Karmøy will have a capacity of 110,000 tonnes per year. Completion of the casthouse is scheduled for the first quarter of 2028 and is Hydro's largest investment in Norway in ten years.
The new casthouse will produce aluminium wire for power cables in Europe. Aluminium is defined by the EU as a critical material. Norway currently accounts for 40 percent of the aluminium produced in Europe.
With a new wire rod casthouse at Karmøy, Hydro can produce more aluminium wire for a rapidly growing market.
'Europe's energy transition is about one thing, more renewable power production, and the power produced must be transported over long distances. Aluminium is crucial for transporting electricity to where it is needed. By expanding the capacity to deliver low-carbon aluminium from Norway to the EU, we help ensure that the infrastructure, the very backbone of the future energy system, supports both Europe's security and climate policy goals,' says Kallevik.
Increased demand for low-carbon aluminium
While a turbulent global landscape and lower industrial activity has reduced aluminium demand over the past year, Hydro has sold more low-carbon aluminium in recent years. In the energy transition, properties such as weight, durability and recyclability give aluminium a competitive advantage. An aluminium conductor with the same electrical conductivity as a copper conductor weighs approximately 50 percent less, or half the weight, of a copper conductor.
'We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials. Despite generally weaker demand in 2024, Hydro sold more low-carbon and recycled aluminium last year than in both 2023 and our record year in 2022,' says Kallevik.
The new casthouse will contribute to increased product flexibility in a volatile aluminium market, where the markets for automotive and building systems are particularly challenging. With a new wire rod casthouse, Hydro can produce more aluminium wire for a rapidly growing market.
Illustration of Hydro's new wire rod casthouse at Karmøy, Norway. Completion of the casthouse is scheduled for the first quarter of 2028.
'Europe's transition from imported fossil energy to domestically produced renewable power opens an exciting market when the infrastructure behind the electrification wave is to be built. Our ambition is for Hydro to play a key role as a stable, reliable supplier of the aluminium solutions Europe needs to succeed,' says Kallevik.
The project is pending final build decision which will be made in the fourth quarter of 2025. The investment is included in Hydro’s annual investment plans of approximately NOK 15 billion.
About Hydro Karmøy
Hydro produces primary aluminium at Karmøy. Karmøy is one of Europe's largest primary aluminium plants. At Karmøy, Hydro has its pilot plant for smelting technology with the most climate and energy-efficient aluminium production technology in the world.
There are two casthouses at Karmøy: one delivering extrusion ingot for profile production and one producing wire rod for high-voltage cables. Hydro also has a research and development center at the plant that focuses mainly on improving the production process.
Hydro Karmøy has a total production of around 270 000 tonnes of primary aluminium and 220 000 tonnes of casthouse products annually. The plant has around 550 employees and began production in 1967.
Source: Norsk Hydro
