News | September 10, 2021

Hydro Signs Agreement For Alunorte Natural Gas Supply

Hydro has signed a 15-year agreement with New Fortress Energy (NFE) for the supply of Liquefied Natural Gas (LNG) to the Alunorte alumina refinery in Brazil.

The fuel-switch project at Alunorte alumina refinery aims to replace the refinery’s energy sources and reduce CO2 emissions. That initiative is part of Hydro's climate strategy and global commitment to reduce its greenhouse gas emissions by 30% by 2030.

It is expected that NFE will supply Hydro Alunorte with 29.5 TBtu of natural gas annually from NFE’s Barcarena LNG receiving and regasification terminal located in the state of Pará, Brazil.

Alunorte will adapt the calcination process and part of the steam generation at the refinery to switch from fuel oil to natural gas as the energy source. The conversion is expected to be complete by end of first quarter 2023. The fuel switch will reduce the refinery’s annual CO2 emissions by 600,000 tonnes.

“Alunorte is among the most energy-efficient alumina refineries in the world. The fuel switch to LNG is another step to improve our operations, driving sustainability and industry best practices to lower environmental impact,” says John Thuestad, Executive Vice President for Hydro’s Bauxite & Alumina business area.

The availability of natural gas is important for the industrial development in the Pará region and enables substitution of carbon-intensive fuels into natural gas with lower environmental impact. The Alunorte refinery will be an important gas consumer in Pará and therefore an enabler for establishing LNG supply in Pará state.

“Access to LNG will enable a more-sustainable operation for Hydro and also give access to natural gas for other industries and consumers in the state of Pará. This is part of our commitment to support local development,” says Thuestad.

The agreement with NFE for the supply of LNG is subject to final build decision for the fuel switch project, expected by the end of 2021.

Source: Norsk Hydro