Hydro's Bold Investment in Renewable Energy
Norsk Hydro is charting a transformative path in the renewable energy sector with a landmark investment decision. The company will invest NOK 1.2 billion in the Illvatn pumped storage power plant, marking its largest development in hydropower in over two decades. Construction is set to commence in November, with the facility slated to begin operations by 2030.
Enhancing Power Production
The new pumped storage facility will deliver 107 GWh of additional annual renewable energy, essential for Hydro's aluminium production. Although the total investment for the project amounts to NOK 2.5 billion, thanks to Norway's favorable cash flow tax scheme for hydropower projects, Hydro’s net expenditure after tax will be about NOK 1.2 billion.
A Commitment to Renewable Energies
“Now more than ever, renewable energy is crucial. This represents our most significant investment in hydropower since the New Tyin power plant was launched in Årdal in 2004. The Illvatn plant will not only elevate energy production but also enhance our reservoir and power capacity,” said Kari Ekelund Thørud, Executive Vice President of Hydro Energy. “As we move ahead with this initiative, we aim for zero net loss of prioritized nature, establishing a new standard for hydropower development.”
Project Details and Innovations
The Illvatn pumped storage power plant will utilize a novel system where water is pumped from the Fivlemyrane reservoir, situated at an elevation of 1,018 meters, to the Illvatn reservoir at 1,382 meters. This increased reservoir capacity will be achieved by lowering the minimum regulated water level in Illvatn. The project aims to mitigate water loss during summer months, enhancing overall production during the winter when energy demands peak.
Infrastructure Enhancements
In addition to the pumped storage plant, Hydro will construct a new 13-kilometer power line connecting Fivlemyr to Sveinsøystølen. This infrastructure will feature 48 power towers constructed with aluminium, signaling a shift toward sustainable materials in power grid development. This innovative approach aims to replace traditional composite and steel structures with environmentally friendly aluminium.
Supporting Industrial Growth
Norway’s industrial sector stands as a global leader, powered by access to renewable energy and advanced technology. The Illvatn project is pivotal in expanding Hydro’s energy portfolio, which supports aluminium production facilities throughout Norway. Increased hydropower production is essential for ensuring competitive energy prices for these operations.
Hydro's Environmental Goals
Hydro is actively working towards a greener future by aiming to achieve a carbon footprint approximately 75 percent lower than the global average for its aluminium production by 2050. The commitment to sustainability is evident in their multifaceted approach to expanding renewable energy capacity and adhering to stringent environmental standards.
Further, the push to expand both power generation and grid infrastructure aligns with larger goals of securing jobs and fostering new industrial opportunities in Norway.
Investor contact:
Elitsa Blessi
+47 91775472
Elitsa.Blessi@hydro.com
Media contact:
Anders Vindegg
+47 93864271
Anders.Vindegg@hydro.com
Frequently Asked Questions
What is the purpose of the Illvatn pumped storage power plant?
The Illvatn pumped storage power plant aims to enhance Hydro's renewable energy production and support aluminium production in Norway.
How much is Hydro investing in the project?
Hydro has committed NOK 1.2 billion to the Illvatn project, part of a total NOK 2.5 billion investment.
When will the Illvatn facility start operations?
The Illvatn pumped storage power plant is expected to commence operations in 2030.
What are the environmental goals of the project?
The project aims for net-zero loss of prioritized nature and supports Hydro's ambition to produce carbon-free aluminium by 2050.
How does this project contribute to industrial growth?
The development of the Illvatn plant will increase renewable energy availability, supporting job creation and ensuring competitive energy pricing for local industries.
