Hydro touted the deal as a significant step toward sustainability in its aluminum operations. Ola Saeter, Head of Hydro’s primary aluminum plants, stated, "Since 1990, we have reduced greenhouse gas emissions in Norway by 55 percent. We are now taking another step towards zero-emissions. Replacing fossil energy with bioresources opens up new opportunities for decarbonization at our aluminium plants."

 also highlighted recent efforts, including the production of aluminum with near-zero emissions in Luxembourg, carbon capture tests in Sunndal, and the construction of a test facility for closed-loop electrolysis in Porsgrunn, Norway.

The counterparty to the deal is Havila, which 

 the local assets of Nesset Biogass in Møre og Romsdal, Sunndal. The deal is conditional on the project receiving support from Enova, a Norwegian state enterprise that offers grants for innovative green energy projects.

 notes 7.17 million tonnes of CO2 Scope 1 emissions, with the 20,000 tonnes in savings representing approximately 1% of its Scope 1 emissions from its Norwegian operations. 

While biomethane usage is not directly stated, the 20,000 tonnes of avoided emissions suggest a biomethane consumption of 4 GWh, which represents slightly more than 0.1% of its natural gas usage in 2022 (13.2 PJ). Furthermore, the locally produced gas falls short by 30% of replacing all fossil gas usage at Sunndal.

However, the commissioning of the biomethane plants will provide local opportunities, both in terms of employment and waste management. Additionally, local use of the biomethane avoids some of the costs and emissions associated with long-distance transport if the gas were to be delivered to a larger hub.

This deal can be seen as a microcosm of the biomethane sector, with smaller projects often justifiable via multiple positive externalities and attracting local support, but facing difficulties in achieving economies of scale.

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On August 30, 2023, the aluminum and energy giant Norsk Hydro announced its plan to replace 70% of the current natural gas usage at its Norwegian Sunndal plant with locally sourced biomethane. This move is expected to reduce emissions by 20,000 tonnes.

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Norsk Hydro to use biomethane at Sunndal aluminum plant

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