Nexans and Hydro Join Forces for Low-Carbon Aluminium Supply Agreement
In a significant move towards sustainable infrastructure, France’s Nexans has recently inked a five-year long-term agreement (LTA) with Hydro. Under this agreement, Nexans will procure approximately 85,000 tons of low-carbon aluminium wire rod. This collaboration aims to bolster Nexans’ European operations, specifically supporting crucial power cable solutions that will enhance subsea high-voltage infrastructure projects.
Low-Carbon Aluminium: A Sustainable Choice
The aluminium supplied by Hydro will be its REDUXA low-carbon product, which boasts a verified carbon footprint of less than 4.0 kg CO2 per kg of aluminium. This figure is strikingly less than one-third of the global average, underlining the environmental benefits of this partnership. The production of the REDUXA aluminium utilizes 100% renewable energy—a vital component in the drive towards a more sustainable industrial future.
Commitment Through 2030
This agreement, effective until 2030, aligns perfectly with Hydro’s recent investments to expand aluminium wire rod capacity at its Karmøy smelter in Norway. Hydro’s initiative not only reflects its commitment to low-carbon solutions but also strengthens its role in revolutionizing the aluminium market.
Strengthening the Energy Supply Chain
Vijay Mahadevan, Executive Managing Director for Europe and Chief Operations Officer at Nexans, emphasized the importance of this agreement for Europe’s electrification ambitions. He remarked, “Europe’s electrification ambitions depend not only on generating cleaner energy but also on building the infrastructure needed to transport it efficiently and reliably.” The partnership is particularly timely as countries across Europe race to modernize their electrical grids to sustain increasing energy demands.
Applications Beyond Subsea Infrastructure
While subsea high-voltage infrastructure projects represent a significant application for the low-carbon aluminium, its utility extends across various other domains. Nexans plans to utilize this aluminium in medium-voltage power grids and overhead transmission lines, ensuring a wider impact on improving Europe’s electricity infrastructure.
Opportunities for Growth in the Energy Sector
Hanne Simensen, Executive Vice President of Hydro Aluminium Metal, articulated the broader context of this agreement. She pointed out the transition from fossil energy imports to domestically produced renewable power in Europe, highlighting the strong demand for modern electricity infrastructure. By partnering with Nexans, Hydro aims to provide a stable and reliable supply of low-carbon aluminium solutions critical for enhancing the region’s grid, competitiveness, and energy security.
A Future of Responsible Production
With this agreement, Nexans is not just securing necessary materials but is also contributing to a sustainable future. The commitment to responsibly produced aluminium is more than just a business strategy; it reflects a larger ethos toward environmentally conscious practices in manufacturing and energy supply.
This collaboration between Nexans and Hydro serves as a shining example of how industries can work together to not only meet growing demand but also address the pressing need for sustainability in their operations.