Hydro on the Path to "Zero Emissions" and "Nature Positive"
The aluminium industry faces challenges, transformations, and exciting opportunities. ALUMINIUM spoke with Sacha Brandt, Head of Hydro Extrusions Europe Commercial & VP Hydro Extrusions West, about the industry's current state, development possibilities, and innovations—focusing on Hydro's strategy for "Zero Emissions" and "Nature Positive," and of course, the upcoming trade fair. A crucial factor is the decarbonisation of aluminium production. This is a central task that will significantly shape the industry in the coming years and one Hydro is driving forward with targeted measures. What developments are pivotal? What approach does the company take to reduce and ultimately eliminate emissions? And what focus does the company have for ALUMINIUM in October to address industry challenges and showcase opportunities?
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Mr. Brandt, how do you assess the current situation of the aluminium industry?
In Europe, the situation of the aluminium industry is certainly challenging. We are dealing with multiple crises in succession (e.g., the war in Ukraine, COVID-19, etc.). Energy and personnel policy (wage inflation, skilled labour shortages, demographic change) are by far the biggest challenges. Europe, and especially Germany, has become the problem child in industrial production, and we are losing ground significantly compared to other major powers like China and the USA. We expect policymakers to finally give aluminium the priority it deserves. It is essential and strategically indispensable for us Europeans to not only keep the entire aluminium chain and production in Europe but to expand and consolidate it—keyword strategic independence.
What topics and challenges do you think are currently most significant for the aluminium industry?
The biggest challenge for the aluminium industry at the moment is the decarbonisation of the production chain. Aluminium has a high CO2 output in the smelting of the primary material. However, we need aluminium in all areas of life, so the transition to decarbonisation is the great challenge for our management generation. We can only finance this transition together, with government support, but also with our customers and suppliers, whose support we need.
CBAM (Carbon Border Adjustment Mechanism) is principally a good idea. However, we must be careful not to approach the topic too naively and categorically exclude the circumvention of CBAM tariffs (scrap valuation, import of finished products, etc.).
What topics and developments will continue to occupy the industry in the future?
In the field of innovation, we always come back to the topic of sustainability. Here, it will be crucial which market participants manage to implement their decarbonisation roadmap the fastest. At Hydro, we have and will consistently pursue this goal. By 2030, we aim to reduce our direct emissions by 30%. By 2050, we aim to eliminate them entirely. Various technologies are needed for this, but we are confident that we have the right solutions with our innovative ideas.
Additionally, the decarbonisation of transport is a significant topic. Electric vehicles are known to gain importance, and the demand for aluminium in this sector will increase. The speed of this transformation will also be a challenge for us as the aluminium industry. On the one hand, because we have to keep up technologically with the pace, and on the other, because we also have to manage the financing.
The further development of technologies and the transformation of the industry are also topics at ALUMINIUM in October – what innovations will your company be showcasing at the trade fair, and what will be your main focus?
Sustainability and ESG are clearly our focus. The green transformation begins with us. Given the growing demand for low-emission solutions, we must drive the transformation in the aluminium industry to eliminate emissions from production processes across the entire value chain. We believe that "Zero Emission" is possible. This goal is our contribution to the fight against climate change—a goal for which we must pool our strengths to inspire, challenge, and collaborate successfully.
As Norsk Hydro, we want to do everything we can to decarbonise our entire value chain and beyond to become "Nature Positive." We support our customers in achieving the same goal with more sustainable and well-thought-out products. The raw material aluminium has a significant CO2 footprint, and here we see the opportunity to achieve something positive for our future together with our customers. This year, we are essentially continuing the path we have been consistently following for several years. But every step, every decision is important. And only by working together can we make a difference.
How significant is ALUMINIUM for your company?
The ALUMINIUM world trade fair is like a family reunion for the industry. Here, you meet new faces and, of course, old acquaintances. For many years, the ALUMINIUM trade fair has been our "business thermometer" for the coming years; here, we decide on our "investment appetite." We would like to warmly welcome all our partners—customers, suppliers, and employees—and offer them a platform for positive exchange. For years, the Hydro stand has been something of the "heart" of the event; if you wait long enough, you should meet every visitor here at least once. This is also because we are the only company that has everything in-house, from the mine to the finished aluminium component.
What do you expect from ALUMINIUM 2024 overall?
We expect exciting exchanges and many networking activities again this year. Personally, I am curious to see how the various players have developed since the last trade fair. In particular, I hope for diverse impulses on the topic of sustainability and the decarbonisation of the industry.
People are at the centre of everything we do
Sacha Brandt (Head of Hydro Extrusions Europe Commercial & VP Hydro Extrusions West (UK & BNL))
What are the main goals of your participation in the trade fair?
Although the ALUMINIUM trade fair is a specialist trade fair, people are at the centre of everything we do. This means that as a market leader, we must particularly emphasise the social responsibility we have as entrepreneurs. The next generations depend on our actions, and I cannot stress enough the importance of this topic! Accordingly, Environmental Social Governance (ESG) is a huge topic for us, and we are pleased that the topic is finally gaining momentum among many competitors.
As the world's largest, fully vertically integrated aluminium company, we are happy to be represented at the trade fair and see our main goal as bringing all stakeholders together and providing a platform for exchange. Last but not least, it is also important to us to convince our customers that with our >100 locations worldwide, we are doing everything we can to be the best possible partner. With local proximity, globally networked know-how, and stable financial strength.
Thank you for the interview; we look forward to the show!
