Hydro plans aluminum recycling plant in Spain

Norwegian company Hydro has signed an agreement with a subsidiary of the Pulsar Properties Group to purchase land in Torija, Spain, to construct an aluminum recycling plant with 120,000 metric tons of capacity and 65 employees.

The total project investment is estimated to be between 130 million to 140 million euros, depending on the final facility design, market conditions and macroeconomic development, Hydro says. The company adds that it plans to make a final investment decision by the end of 2023.

According to the company, the plant will strengthen Hydro’s capabilities to produce low-carbon aluminum and ensure more scrap is kept in Europe.

“The European and Iberian market for aluminum continues to grow,” says Eivind Kallevik, executive vice president for Hydro Aluminum Metal. “This investment will be an important step towards Hydro's ambition to recycle more postconsumer aluminum, strengthening our position to capture value from growing demand for greener and circular aluminum.”

Aluminum is well-suited for electric vehicle components, renewable energy installations and energy-efficient building systems because of its light weight and infinite recyclability without loss in quality, the company says.

Kallevik says, “Since aluminum is infinitely recyclable, keeping postconsumer scrap in the loop is crucial as recycling requires 95 percent less energy than primary production. Increased recycling of postconsumer scrap is an opportunity for Europe to secure domestic access to aluminum, defined as a strategic raw material.”

Demand for aluminum toward 2030 in Hydro’s main markets is set to grow at around 3 percent per year, and low-carbon aluminum demand is expected to outpace the rest of the market, according to the company. However, every year, around 1 million metric tons of aluminum scrap leaves Europe.

“Thanks to our state-of-the-art technology and competent workforce, we aim to dig deeper into the European scrap pile,” Kallevik says. “This investment will enable us to bring more low-value scrap types back to life as value-added products for electrical transport solutions, building systems and renewable energy applications that will drive Europe’s green transition.”

The recycling facility in Torija will be capable of producing Hydro Circal and other recycled low-carbon aluminum products with a CO2 footprint below 4 kilograms (8.8 pounds) per kilogram (2.2 pounds) of aluminum, according to Hydro.

Hydro Circal extrusion ingot contains at least 75 percent postconsumer scrap certified by third-party auditor DNV GL and has a market-leading CO2 footprint of only 2.3 kilograms (5 pounds) per kilogram of aluminum produced. The company says the Torija project will complement the offering from Hydro’s plant in Azuqueca located nearby and bring a wider range of Hydro’s value-added products to the Iberian market.