Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Carnegie Enviro & Profitability Seminar 2023
22 slides from Norsk Hydro Asa's conference presentation, Sep 26, 2023
Slide 1: Norsk Hydro - Carnegie Enviro & Profitability Seminar
Norsk Hydro - Carnegie Enviro & Profitability Seminar Pål Kildemo, CFO, Norsk Hydro Oslo, Tuesday 26. September 1
Slide 2: In 2020 we set out a forceful agenda towards Hydro 2025
In 2020 we set out a forceful agenda towards Hydro 2025 Seizing opportunities where our capabilities match megatrends Profitability & Sustainability 1 Strengthen position in low-carbon aluminium 2 Diversify and grow in new energy Renewable energy Batteries Hydrogen Develop a more robust, higher earn
Slide 3: Expecting strong demand for greener aluminium
Expecting strong demand for greener aluminium Ambitious abatement targets driving demand in all sectors but especially Automotive OEMs Share of greener 1 aluminium demand per segment OEMs are pushing for ever more ambitious lifecycle decarbonization targets % greener of total aluminium demand Timeli
Slide 4: Hydro provides products with low emissions
Hydro provides products with low emissions Kilos of CO2e emissions per kilo aluminium 20.3 Primary aluminium produced on renewable energy 16.6 4-6 times lower than the world global primary average 8.6 Recycled aluminium from Hydro 6.7 More than 5.7 7 times for 75R, and 3.0 4.0 2.3 33 times for 100R
Slide 5: Low-carbon aluminium gaining ground
Low-carbon aluminium gaining ground Several new strategic partnerships signed this year across segments Navarra green hydrogen LoI with UK bicycle company Renovating Place d’Italie with pilot Brompton Circal 100R Enabling Partnering Delivering g Partnering with Saint-Gobain Joining forces with CAKE
Slide 6: Hydro offers the leading low-carbon product portfolio
Hydro offers the leading low-carbon product portfolio Leading low-carbon aluminium offering and capabilities • Strong scale position within recycling and low carbon aluminium Near-zero • Ambitious, yet concrete, decarbonization roadmap across aluminium e.g., 100% entire value chain PCS uniqueness/ p
Slide 7: Driving sustainability: Future-proofing our company
Driving sustainability: Future-proofing our company Climate Environment Society • On track to meet 30 percent reduction • 1:1 reforestation on track • On track to deliver on target of in scope 1 and 2 CO2e by 2030 empowering 500,000 people with • No net-loss biodiversity ambition for • Net-zero by 2
Slide 8: Strong profitability in return-seeking and growth capex portfolio
Strong profitability in return-seeking and growth capex portfolio Indicative profitability in current return-seeking and Recycling growth portfolio • Increase proportion of post consumer scrap (PCS), lowering metal cost • Improved economies of scale in brownfield expansions • Sorting technology and
Slide 9: Sustainable financing initiatives increase access to capital and provide cost of capital advantage
Sustainable financing initiatives increase access to capital and provide cost of capital advantage Linked to Hydro sustainability ambitions Green and Sustainability Linked Financing Framework 10% • Framework published to facilitate issuance of green and sustainability linked bonds carbon 670 kt emis
Slide 10: Project deep dives B&A
Project deep dives B&A 10
Slide 11: Decarbonization ambition: Significant progress on decarbonization of Alunorte alumina
Decarbonization ambition: Significant progress on decarbonization of Alunorte alumina Tonnes CO2e / tonne aluminium Towards lowest CO2e per tonne alumina relative to peers by 2025 Scope 1 and 2 emissions Fuel switch project 3,2 ~1.4 • Replacing heavy fuel oil with natural gas • Reducing annual CO2e
Slide 12: Tailings Dry Backfill - MPSA
Tailings Dry Backfill - MPSA STEP 1: Thickened tailings are deposited in our new tailings facility and allowed to dry STEP 2: The dried tailings are excavated and transported to the mining Temporary drying of tailings and backfill in mined-out areas area (meaning storage facility can be used over an
Slide 13: Project deep dives Aluminum metal
Project deep dives Aluminum metal 13
Slide 14: Decarbonization ambition: Three paths to zero
Decarbonization ambition: Three paths to zero Clear technology roadmap to deliver industrial volumes of zero carbon aluminium by 2030 HalZero process Carbon capture and storage Recycling and Casting New process technology for decarbonizing Technologies for decarbonizing existing Technologies for mor
Slide 15: Investing in upgrades and technology to make our aluminium more sustainable
Investing in upgrades and technology to make our aluminium more sustainable Upgrade of primary aluminium Energy efficiency projects in Upgrades at Årdal plant plant in Karmøy Norwegian smelters • Upgrade of electrolysis cells to improve • The project will upgrade the power supply • The smelters will
Slide 16: Project deep dives Extrusion
Project deep dives Extrusion 16
Slide 17: Energy saving initiatives gives significant impact through direct investments
Energy saving initiatives gives significant impact through direct investments 93 Annualized savings from 2023 Energy savings projects investments - mNOK 20 Capex (MNOK) Saving (MNOK) 73 LED installations (5 plants)* 21 15 4 1 Solar generation – 1.7 GWH / year 9 (incl. grants) 3 8 17 x Press Hydrauli
Slide 18: Project deep dives Recycling
Project deep dives Recycling 18
Slide 19: Recycling: The fastest route to full decarbonization
Recycling: The fastest route to full decarbonization Advanced sorting technology ready. Progress on casthouse decarbonization technology Advanced sorting technology for more PCS Casthouse decarbonization technology to reach use net-zero HySort technology ready for industrialization Program to test v
Slide 20: Ambitious recycling strategy delivering on future consumption growth
Ambitious recycling strategy delivering on Recycling 2025 and 2027 targets future consumption growth All approved project pipeline PCS usage and ambition In thousand tonnes >x2 770 670 Global aluminium consumption Hydro aluminium production In million tonnes In million tonnes1) 5 320 120 280 100 4 2
Slide 21: Sustainability ambitions: The basis for future position and profitability
Sustainability ambitions: The basis for future position and profitability Climate Environment Society Net zero products, net zero Protect biodiversity and reduce Improve the lives and livelihoods company, net zero society our environmental footprint wherever we operate 21
Slide 22: Hydro
Hydro Industries that matter
Norsk Hydro — Carnegie Enviro & Profitability Seminar 2023 on 6ix