Norway’s public enterprise Enova has funnelled $250million to Norsk Hydro’s next-generation electrolysis pilot project at Karmøy, as the country looks to become world’s greenest aluminium producer.
The plant, expected to cost $600million, woul use electrolysis – a chemical process created by the passage of a direct electric current through an ionic substance – for energy-efficient aluminium production.
Once completed it would have a capacity 70,000 tonnes of aluminium per year, and could begin operations in 2017, Hydro confirmed.
“We have been in an application process with Enova over the past year,” said Svein Richard Brandtzæg, Norsk Hydro’s president and chief executive.
“Hydro’s goal is to realise a ground-breaking new technology that can reduce energy consumption and emissions from Norwegian industry.
“The support from Enova makes it possible to continue to put all the elements in place before potentially making a final decision on the project and starting construction.”
The transaction is subject to the approval by the European Free Trade Association, as well as the project meeting a number of conditions, including ensuring the regional grid can support the industrial growth at Karmøy and planned electrification of offshore energy installations. National grid company Statnett must also secure sufficient electricity at competitive prices under the terms.