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Hydro signs MoU for possible use of natural gas at Alunorte refinery

Hydro has signed a Memorandum of Understanding (MoU) with New Fortress Energy (NFE) with the aim to replace a major part of its current fuel oil consumption at the Hydro Alunorte alumina refinery in Brazil with more environmentally friendly natural gas.

Alunorte alumina refinery
Hydro's alumina refinery, Alunorte, in Brazil.

The supply of liquefied natural gas (LNG) to Barcarena by New Fortress Energy (NFE) is expected to start in 2022.

Hydro will adapt the calcination process and part of the steam generation at Alunorte to switch from fuel oil to natural gas as energy source. The project is supporting Hydro’s climate strategy and its global commitment to reduce its greenhouse gas emissions by 30% by 2030.

According to the MoU signed with NFE on April 15, NFE expects to deliver a minimum agreed amount of natural gas to the refinery per year for a period of 15 years. The natural gas is expected to come from an LNG regasification terminal, which will be located near the Hydro Alunorte refinery in Barcarena.

Hydro Alunorte will be an important gas consumer in the state of Pará, and thereby an enabler for LNG installation in the region. Availability of natural gas is important for industrial development in the region and enables substitution of carbon-intensive fuels into natural gas with lower environmental impact.

“We are committed to drive sustainability and industry best practices to lower environmental impact from our operations. Hydro is supporting use of LNG and natural gas in the state of Pará. 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,” says John Thuestad, Executive Vice President for Hydro’s Bauxite & Alumina business area.

The proposed agreement is subject to reaching commercial agreements and final documentation between the parties.

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Elena Brito Pantoja

Elena Brito Pantoja

Communication and Public Affairs

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