Hydro to build aluminium recycling plant in Spain
Scenic view of landscape against sky during sunset in Torija, Guadalajara, Spain. Image: Hydro
Hydro has signed an agreement to purchase land in Torija, Spain, with the aim of constructing a state-of-the-art aluminium recycling plant.
The new plant will have 120,000 tonnes of annual capacity and around 65 direct employees. The facility will strengthen Hydro’s capabilities to produce low-carbon aluminium and ensure more scrap is kept in Europe.
The agreement has been signed with a subsidiary of the Pulsar Properties Group. The total project investment is currently estimated to be between €130-140 million, depending on the final facility design, market conditions and macroeconomic development. Hydro aims to make a final investment decision by the end of 2023.
“The European and Iberian market for aluminium continues to grow. This investment will be an important step towards Hydro’s ambition to recycle more post-consumer aluminium, strengthening our position to capture value from growing demand for greener and circular aluminium,” said Eivind Kallevik, executive vice president for Hydro Aluminium Metal.
Aluminium is well suited for electric vehicle components, renewable energy installations and energy efficient building systems because of its unique properties such as light weight and infinite recyclability without loss in quality.
“Since aluminium is infinitely recyclable, keeping post-consumer scrap in the loop is crucial, as recycling requires 95% less energy than primary production. Increased recycling of post-consumer scrap is an opportunity for Europe to secure domestic access to aluminium, which is a strategic issue in view of multiple crises facing Europe,” said Kallevik.
The demand for aluminium towards 2030 in Hydro’s main markets is set to grow at around 3% per year, and low-carbon aluminium demand is expected to outpace the rest of the market. However, every year, around 1 million tonnes of used aluminium scrap leaves Europe.
“Thanks to our state-of-the-art technology and competent workforce, we aim to dig deeper into the European scrap pile. 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,” said Kallevik.
The recycling facility in Torija will be capable of producing Hydro CIRCAL and other recycled low-carbon aluminium, with a CO2 footprint below 4kg CO2 per kg aluminium.
Unique to Hydro, Hydro CIRCAL extrusion ingot contains at least 75% post-consumer scrap certified by third party auditor DNV GL and has a market leading CO2 footprint of only 2.3kg CO2e/kg aluminium. 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.