The total investment of the project is estimated between 130 and 140 million euros, depending on the final design, market conditions and macroeconomic evolution.
Hydro has reached an agreement with a subsidiary of the Pulsar Properties Group for the purchase of the land in Torija, Guadalajara, where it will build a next-generation aluminum recycling plant.
The total investment of the project is estimated between 130 and 140 million euros,depending on the final design, market conditions and macroeconomic developments. The idea is to make the decision at the end of 2023.
The plant, with an annual capacity of 120,000 tonnes, will strengthen Hydro's capabilities to produce low-carbon aluminium. Specifically, it will be able to produce low-carbon recycled aluminium, with a CO2 footprint of less than 4 kg CO2 per kg of aluminium.
For example, the Hydro Circal extrusion ingot contains at least 75% post-consumer scrap certified by DNV GL, with a CO2 footprint of only 2.3 kg of CO2 per kg of aluminium.
It should be noted that aluminum is unlimited recycling, so keeping post-consumer scrap is decisive in the production cycle. In fact recycling requires 95% less energy than primary production.
However, currently more than one million tons of used aluminum scrap leaves Europe, something that it can be avoided by investing in recycling plants.
By 2030, the demand for aluminium in Hydro's main markets is expected to grow by 3% per year, and that the demand for low-carbon aluminum outperform the rest of the market.
In the case of the Torija project, it will complement the offer of the group's plant in Azuqueca de Henares, and will allow the development of a wider range of value-added products for the Iberian market, such as electric transport solutions, building systems and renewable energy applications.