Hydro Announces Major Investment in Low-Carbon Aluminium Wire Rod Facility

Hydro 

Norwegian aluminium producer Hydro has announced plans to construct a 110,000-ton-per-year aluminium wire rod casthouse at its Karmoy smelter in Norway. The initiative represents the company’s largest domestic investment in over a decade, highlighting its commitment to supporting Europe’s low-carbon energy transition with sustainable materials.

Set to begin production in the first quarter of 2028, the new facility will produce low-carbon aluminium wire rod designed specifically for power cable manufacturing. These cables are vital for the renewable energy infrastructure being deployed across Europe, especially as the EU accelerates its Green Deal targets and energy grid modernization.

Hydro noted that aluminium’s light weight, durability, and recyclability make it ideal for use in modern energy systems. With equal electrical conductivity to copper at half the weight, aluminium wire rod offers performance advantages in large-scale grid projects, particularly in overhead transmission lines.

Rising Demand for Sustainable Aluminium in Energy Infrastructure

While global aluminium markets have seen softer overall activity, Hydro has recorded surging demand for low-carbon aluminium, particularly in sectors linked to renewable energy and grid electrification.

“We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials,” said Hydro CEO Eivind Kallevik. This trend reflects policy-driven demand growth, especially under the EU’s climate-neutrality roadmap, which favors recyclable and low-emission materials across all energy sectors.

The planned casthouse at Karmoy will enhance Hydro’s ability to serve the energy transmission cable market, supporting European efforts to build sustainable, resilient grids that are less dependent on fossil-based inputs.

Final Investment Decision Due by End of 2025

Hydro indicated that while planning and technical preparations are underway, a final investment decision will be made in Q4 2025. Pending approval, the Karmoy facility will become a key pillar in Hydro’s low-carbon aluminium product portfolio and position Norway as a strategic supplier of critical clean energy materials to Europe.