WEBVTT

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<v ->Hello, I'm Øyvind Berle,</v>

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I'm a partner at BCG in Oslo

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and I'm here today with BjØrn Kjetil Mauritzen,

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who's the head of sustainability at Norsk Hydro.

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(gentle music)

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Hydro is two companies in one.

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One is the aluminum side and the other is the energy side.

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<v ->We are a fully integrated company</v>

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all the way from the mine to the refining,

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to the energy production, to the smelting,

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to the downstream extrusions.

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<v ->You've done quite a bit in terms of aluminum recycling.</v>

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Can you tell us more about that?

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<v ->Recycling is a very important area of growth.</v>

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We have an ambition to grow from around 200,000 tons

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of post-consumer scrap in 2020

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to more than 1 million tons in 2030,

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and we are already halfway.

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This is very important

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from a sustainability perspective

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because you don't use the same amount of energy.

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The use benefits of aluminum are the same

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regardless whether it's recycled.

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Primary aluminum can be produced

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from a footprint of 20 kilos,

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if you use coal as the fuel source.

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down to three and a half,

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as we are doing on a renewable-based smelters.

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Recycling of post-consumer scrap is only half a kilo of CO2,

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which is much, much lower

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than the global average of 15 kilos.

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<v ->Could you tell us about how you managed to</v>

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upgrade the quality of the mixed scrap you receive?

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<v ->It's really important to maintain the alloys in aluminum</v>

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What you want to do is to avoid to mix those alloys

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because then you get the more difficult product

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that might not meet the specifications of the customers.

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We are testing out highly advanced sorting facilities

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where you can sort out the different alloys

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from the shredded scrap.

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Second, to have good control over procurement

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for the scrap. It's important to optimize

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all these different moving parts every day.

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<v ->There is an increased focus on sustainability in Hydro.</v>

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What are the main components of your net zero strategy?

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<v ->We have an ambition to to be at zero in 2050,</v>

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but we also have ambition to reduce our emissions by 30%

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until 2030.

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When we get to 2030,

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we have three elements to sort out.

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One is the natural gas consumption.

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The plan there is to replace this by green hydrogen

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and the second one is to take the CO2

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out of the direct emissions

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from the smelting process itself.

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The last thing is the remaining smelters

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in our portfolio now that are not 100% renewable based

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Then we need to introduce more solar or wind.

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Today, more than 25% of our smelter portfolio

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is run on wind power.

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In this decade, the most important thing we're doing

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is to decarbonize our aluminum refinery.

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It's the biggest aluminum refinery in the world

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outside China.

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Switching all the boilers for the steam generation

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to renewable power

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will take down the footprint of a refinery by 70%

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and that feeds straight into the alumina

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that is going into the smelter.

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The investments you make in one part of the value chain

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will actually feed through

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and be very beneficial for the next step.

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Equally important is building this market.

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<v ->Are you seeing that the customers are running much faster</v>

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towards decarbonization than in the past?

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<v ->The advanced customers</v>

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are definitely not just focusing on carbon,

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they are focusing on the whole element of sustainability

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<v ->How can other companies learn from Hydro</v>

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in terms of your ambition to drive sustainability

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through the use of recycling?

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<v ->To really understand the sustainability benefits</v>

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of recycling because it's not just on the carbon side.

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Any material that we recycle will mean less land use,

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less water consumption.

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You need to educate customers,

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helping them to calculate their footprint

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that they need to show to their customers

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or need to report on.

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We see huge benefits of being fully integrated

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because when the customer asks us

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about all these data on sustainability,

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we have all the data in house.