Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (September 2007)
18 slides from Norsk Hydro Asa's investor day presentation, Sep 6, 2007
Slide 1: Qatalum
Qatalum Tom Røtjer, Executive Vice President and Head of Projects September 6, 2007 1
Slide 2: Hydro Projects
Hydro Projects Hydro Aluminium Aluminium Energy Projects Metal Products Support Hydro’s global growth ambitions, ensuring Legal structured, efficient and predictable project development and execution Organisation Project • Ensure appropriateCompletion basis for investmentDevelopment decisions and St
Slide 3: Experienced project organization
Experienced project organization Key success factor • One single organization responsible for execution of all projects • dedicated project teams • work processes, systems and procedures Oseberg Field Center QVC Tyin Qafco 4 Troll C Sunndal 4 Ormen Lange 3
Slide 4: Hydro project history in Qatar
Hydro project history in Qatar • Qafco 1 in 1973 • Qatar Vinyl Company in 2001 • Qafco 2 in 1979 • Qafco 3 in 1997 • Qafco 4 in 2004 4
Slide 5: Qatalum a 50/50 joint venture company
Qatalum a 50/50 joint venture company Joint venture agreement 50% 50% z Gas supply z Technology and competence z Industrial climate z Metal marketing z Site & off-take z Project management Power plant and smelter 5
Slide 6: Qatalum location
Qatalum location Mesaieed Industrial City 6
Slide 7: Qatalum smelter
Qatalum smelter Largest greenfield capacity built in one step • First-stage capacity • Smelter: 585 000 tonnes per year • 704 cells in 2 double-lined potrooms • Hydro technology • Anode plant and cast houses • 1 250 MW power plant • Possible expansion to 1 200 000 tonnes per year • Technology design
Slide 8: Key reference project - Sunndal 4
Key reference project - Sunndal 4 • Hydro technology used in Sunndal, further developed for Qatalum • Project execution, start-up and operations experience implemented in Qatalum • Personnel with experience from Sunndal key in Qatalum project 8
Slide 9: Qatalum site layout
Qatalum site layout Mesaieed Industrial City Port Cast house Pot lines Power Plant Carbon 9
Slide 10: Qatalum project schedule
Qatalum project schedule • Heads of agreement December 2004 • Joint venture agreement March 2006 • Investment decision October 2006 • Final build decision July 2007 • Production start-up December 2009 • Full production Mid-2010 10
Slide 11: Project execution strategy
Project execution strategy Engineering Procurement Construction (EPC) contract philosophy • Maximize competition by involving resources and experience of several principal aluminium contractors for 11 EPC packages • Compensation formats mainly lump-sum 11
Slide 12: Project execution strategy
Project execution strategy Power plant EPC turnkey package (1 250 MW) • Contractor – GE/Doosan (US/Korea) 12
Slide 13: Qatalum investment cost
Qatalum investment cost • Investment estimate USD 4.8 billion (100 percent) • All main contracts to be awarded by October 2007 13
Slide 14: Qatalum project execution
Qatalum project execution Global procurement Project team of 100 people worldwide Construction site/project team location Contracts/project team locations 14
Slide 15: Site preparation started
Site preparation started 10 million tonnes of landfill 15
Slide 16: Key success factors
Key success factors • Well-defined concept at time of decision • Successful contract strategy and selection of contractors • Interface management • Sound risk management • Active stakeholder management • Strong HSE ambitions • Project completion – “The Hydro Way” 16
Slide 17: From Ormen Lange to Qatalum
From Ormen Lange to Qatalum The Qatalum project spans an area of around 260 soccer fields. That’s more than they need to complete a World Cup playoff – with all the matches playing simultaneously! 17
Slide 18: Cautionary note in relation to certain forward-looking statements
Cautionary note in relation to certain forward-looking statements Certain statements contained in this announcement constitute “forward-looking information” within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as a