Aluminium and renewable energy company Hydro has invested €180m ($195.84m) for the construction of a new aluminium recycling plant in Torija, Spain.
The move is intended to enhance the company’s contribution to the European green transition.
It also aligns with the growing demand for sustainable materials in industries such as transport, construction, and renewable energy.
The investment is pending the final construction decision, anticipated in the second half (H2) of 2024, with production scheduled to begin in 2026.
The facility is set to produce 120,000 tonnes (t) of low-carbon recycled aluminium annually, creating approximately 70 new jobs in the process.
The plant aims to supply the European market with customised aluminium alloys, which are noted to be essential for manufacturing electric vehicle components, renewable energy installations, and energy-efficient building systems.
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The factory is expected to expand Hydro’s product range in Europe, complementing the output from its Azuqueca facility, also in Spain.
It will use process technologies from Hydro’s existing recycling plants, allowing the recycling of up to 70,000t of post-consumer scrap.
This approach reduces energy consumption during production while maintaining the aluminium’s quality and corrosion resistance.
The facility will produce certified low-carbon aluminium with a carbon dioxide (CO₂) footprint under 4kg per kilogram, as verified by DNV.
Additionally, Hydro will offer its product, Hydro CIRCAL, which contains a minimum of 75% post-consumer scrap and has a CO₂ footprint of below 1.9kg per kilogram of aluminium.
Hydro Aluminium Metal executive vice-president Eivind Kallevik said: “Hydro’s new state-of-the-art aluminium recycling plant in Torija will be ideally positioned to help customers reach their sustainability goals by offering low-carbon aluminium with a high share of recycled post-consumer scrap.”