Norwegian aluminium producer Norsk Hydro ASA announced last week the signing of a memorandum of understanding with Brazilian firm New Fortress Energy (NFE) to provide liquefied natural gas to its Alumina do Norte do Brasil S.A. (Alunorte) alumina refinery.
Per the firm, the new source of energy would replace a large portion of its current fuel, which is fuel oil. NFE’s first delivery of LNG is expected to be next year. The MoU contemplates a fifteen-year term for the agreement.
NFE says it will source the liquid natural gas for the agreement from an LNG regasification terminal nearby Alunorte in Barcarena.
John Thuestad, Executive Vice President for Hydro’s Bauxite & Alumina business area, said the move is part of a broader push to reduce greenhouse gas production by the firm by almost one third by 2030.
“We are committed to drive sustainability and industry best practices to lower environmental impact from our operations. Hydro is supporting use of LNG and natural gas in the state of Pará. Access to LNG will enable a more sustainable operation for Hydro, and also give access to natural gas for other industries and consumers in the state of Pará.”
Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.