Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Sparebank 1 Markets 2018 Energy Conference
22 slides from Norsk Hydro Asa's conference presentation, Feb 28, 2018
Slide 1: Global presence in aluminium, global energy agenda
Global presence in aluminium, global energy agenda President and CEO Svein Richard Brandtzæg Sparebank 1 Markets 2018 Energy Conference
Slide 2: 112 years young, 112 years strong
112 years young, 112 years strong More than 110 years of Aluminium Hydropower Engaged in the entire 35,000 employees at Involved and industrial development – metal of the future – infinitely recyclable value chain – 150 locations in more engaged and responsibility «green» energy R&D, innovation and
Slide 3: Hydro. 360° aluminium
Hydro. 360°aluminium We are integrated across the entire value chain and across all market segments Bauxite Transport & Building & Packaging Electronics & Machinery & Consumer automotive construction electrical equipment durables Alumina Energy Primary Metal Rolled Products Extrusion Recycling 3
Slide 4: Aluminium – among the world's biggest energy reserves
Aluminium – among the world’s biggest energy reserves
Slide 5: The world of aluminium is greatly influenced by key long-term trends
The world of aluminium is greatly influenced by key long-term trends The key dilemma are affecting us all: producers, consumers, regulators, end-users Increased resource efficiency Part of the solution to Riding the wave of technological Realizing the low-carbon future or accelerated resource climat
Slide 6: Aluminium is energy in solid state
Aluminium is energy in solid state ~ 60 million mt Global primary metal production reached an annual rate of more than 60 million tonnes last year ~ 50 % Energy represents around half of the cash cost from raw materials to finished aluminium products
Slide 7: Demand driven both by substitution and expansion into new markets
Demand driven both by substitution and expansion into new markets Aluminium is the fastest-growing base metal in the world Marine / Offshore applications Zero-emission electrical car ferries in B&C, e.g. Supertall buildings Transportation, truck & trailer applications 100% aluminium for light-weight
Slide 8: Aluminium infinitely recyclable, making it a giant energy storage bank
Aluminium infinitely recyclable, making it a giant energy storage bank One of the world’s largest energy reserves, increasingly utilized through urban mining and recycling 5% of original energy use to recycle 75% of all aluminium ever produced still in use (8)
Slide 9: But global aluminium also illustrates the climate paradox
But global aluminium also illustrates the climate paradox Increasing share of production is coal-based – produced where emissions are highest, not lowest CO2 emissions and main energy source in Aluminium production by power source aluminium production by country Mill tonnes Tonne CO2 / tonne alumini
Slide 10: Hydro's global energy agenda
Hydro’s global energy agenda
Slide 11: Hydro's global primary energy demand
Hydro’s global primary energy demand Spanning the entire aluminium value chain, all global regions and energy carriers Europe Power 94.3 PJ North America Natural gas 10.7 PJ Power 10.3 PJ Middle East Power 34.2 PJ South America Power 23.6 PJ Coal 13.9 PJ Australia/Asia Fuel oil 28.0 PJ Power 9.7 PJ
Slide 12: Hydro has captive hydropower production of around 10 TWh
Hydro has captive hydropower production of around 10 TWh Power production capacity (TWh), per region and reversion year Sogn 2051-2057* Normal annual production 3.2 10 TWh Telemark Røldal-Suldal 2044-2049* 2022* 0.5 3.0 3.1 No reversion Subject to reversion Vigeland Bubble size = production in TWh 0
Slide 13: Energy as a global energy provider and center of excellence
Energy as a global energy provider and center of excellence Strong, sustainable value creator and energy provider throughout the value chain To own, operate and maximize To provide competitive power sourcing value of Hydro’s energy assets and global energy competence 13
Slide 14: Securing long-term competitive power sourcing for smelter portfolio
Securing long-term competitive power sourcing for smelter portfolio 6.4 TWh hydro and wind power contracts signed to source aluminium production in Norway beyond 2020 Sourcing platform for fully-owned smelters, Norway* TWh 20 Utilizing wind 15 power to strengthen Hydro’s renewables base in Norway 10
Slide 15: Transforming energy into products and solutions for a sustainable future
Transforming energy into products and solutions for a sustainable future
Slide 16: Our global industry's most ambitious climate strategy
Our global industry’s most ambitious climate strategy Hydro on track to be carbon-neutral from a life-cycle perspective by 2020 Hydro’s CO2 emissions from a life-cycle perspective* Million kg Co2 Production – reduction in 2.5 own emissions 2.0 1.5 Products – use 1.0 phase benefits 0.5 Recycling of 0
Slide 17: Part of the solution – turning words into action
Part of the solution – turning words into action Industrial strategy, business development and climate ambitions hand in hand Value-creating, climate friendly investments Karmøy technology pilot Primary Metal, Norway Automotive line 3 Rolled Products, Germany UBC recycling line Rolled Products, Germ
Slide 18: Utilizing aluminium's use-phase benefits and recycling friendliness
Utilizing aluminium’s use-phase benefits and recycling friendliness Setting new standards Hydro Extruded Solutions to deliver in environmentally friendly to the world’s first purpose-built, and sustainable buildings. mass-market electric taxi in London.
Slide 19: Hydro's climate strategy converted into low-carbon products
Hydro’s climate strategy converted into low-carbon products Our uniqueness is our integrated value chain, share of hydropower and post consumer scrap recycling Hydro 4.0 Hydro 75R Bauxite Alumina Shipping Energy Anodes Electrolysis Casting All-in approach At least 75% post-consumer Maximum or below
Slide 20: Combining high-value outputs with lower cost inputs
Combining high-value outputs with lower cost inputs Repositioning Hydro’s recycling activities, preparing for the circular economy 250 kmt in post-consumer scrap recycling by 2020
Slide 21: First metal from the Karmøy technology pilot
First metal from the Karmøy technology pilot The world’s most energy and climate-efficient electrolysis technology 21
Slide 22: Infinite Aluminium Hydro
INFINITE ALUMINIUM HYDRO
Norsk Hydro — Sparebank 1 Markets 2018 Energy Conference on 6ix