Image above: Illustration of the Torija recycling plant

The new recycling plant will produce 120,000 metric tonnes of low-carbon recycled aluminium per year and create approximately 70 new jobs in Torija. The products will be aluminium extrusion ingots for key European industries such as transport & automotive, building & construction, renewable energy installations, and consumer durable markets.

“Worldwide demand for materials like aluminium is growing as we build the infrastructure needed for the green transition. To reach our climate goals, we must also change how these materials are produced. Key European industries, including the automotive and building & construction sectors, need access to responsibly produced materials with a low-carbon footprint. Hydro’s new state-of-the-art aluminium recycling plant in Torija will be ideally positioned to help customers reach their sustainability goals by offering low-carbon aluminium with a high share of recycled post-consumer scrap,” says Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal.

The investment is pending final build decision, which is expected in the second half of 2024. Production is expected to commence in 2026.

Scaling up production of low-carbon, recycled aluminium for European industries

Aluminium is lightweight and infinitely recyclable without loss in metal quality. Hydro Torija will supply key European markets with high quality, tailor made aluminium alloys for products such as electric vehicle components, renewable energy installations and energy efficient building systems. The extrusion ingots produced in Torija will complement the customer offerings from Hydro’s plant in nearby Azuqueca and bring a wider range of Hydro’s value-added products to the European market.

Through advanced sorting technology, Hydro is able to create advanced materials with the highest post-consumer recycled content in the market. As a result, Hydro drastically reduces energy use in the production phase, while still offering high quality aluminium with equivalent metallurgical properties that maintains the strong material and corrosion resistance needed in high demanding segments such as automotive.

By applying process technologies developed at the Hydro recycling plants in Clervaux, Luxembourg, and Azuqueca, Spain, Hydro will be able to recycle up to 70,000 tonnes of post-consumer scrap at the new facility in Torija. The facility will be capable of producing certified low-carbon aluminium with a CO2 footprint below 4.0 kg CO2 per kg, with third-party verification by DNV, in addition to Hydro’s premium product Hydro CIRCAL. Hydro CIRCAL is Hydro’s premium recycled aluminium with a guaranteed minimum of 75 percent post-consumer scrap and a corresponding CO2 footprint below 1.9 kg CO2 per kilo aluminium.

Providing additional comments to AIT, Hydro have also provided details on their future ambitions:

Hydro’s recycling ambitions and operations

As announced on Hydro’s Capital Markets Day in December 2023, Hydro is stepping up growth in aluminium recycling to meet the increasing demand for low-carbon, recycled products.

  • The acquisition of the Polish recycler Alumetal and investment in HyForge in Rackwitz, Germany in 2023 enriches product outlets by utilising different scrap types to cater for the growing market for recycled aluminium.
  • In addition, the greenfield recycler Hydro Cassopolis in Michigan, US was officially opened on November 16 last year, aiming to supply aluminium and Hydro CIRCAL to the automotive and US market.
  • By the end of 2023, Hydro was ramping up to 540 kt post-consumer scrap capacity (PCS), already achieving the 2025 target set out at Capital Markets Day in 2022 of 520-670 kt.

Looking ahead to 2030, the ambition is to further increase PCS usage towards 850 kt to 1,200 kt, compared to the 2027 target of 770 kt.

  • Investments include expanding and upgrading recycling facilities and strengthening the position in scrap sourcing and advanced sorting capabilities.
  • Hydro aims to further diversify the portfolio of cast house products, in collaboration with customers, to unlock the potential for increased use of recycled materials in new segments.
  • Depending on market developments and capital availability, this is estimated to give a recycling EBITDA in the range of NOK 5-8 billion in 2030.

Hydro has an extensive recycling network, with a total of 30 recycling facilities in Europe, North America and Brazil. Growth in recycling is a central part of Hydro’s strategy, and the company is stepping up its growth ambitions to meet the increasing demand for low-carbon, recycled products. With a focus on increased use of post-consumer scrap, Hydro aims to further diversify the portfolio of cast house products, in collaboration with customers, to unlock the potential for increased use of recycled materials for a more circular economy.