Aluminum
CRU aluminum news roundup
Written by Marziyeh Horeh
June 28, 2024
Hydro and Macquarie begin renewable energy partnership
It was announced this week that Hydro has completed the transaction for the sale of 49.9% of the renewable energy company, Hydro Rein, to Macquarie Asset Management. The transaction values Hydro Rein at $333 million as per June 30, 2023, subject to closing adjustments. Macquarie contributes $214 million of this amount at closing. The funds will be transferred by June 25 of this year. The remaining part of the committed capital will be contributed over time as the need arises, it was specified. The impact from the transaction will be recognized in Hydro’s income statement for the second quarter and excluded from “Adjusted results.”
Hydro Rein is established as a joint venture (JV) where Hydro owns 50.1% and Macquarie 49.9% of the company. All of Hydro Rein’s assets in Brazil, Denmark and Sweden, and all Energy Solutions projects, are included in the joint venture. Hydro Rein’s projects in Norway will also be included in the joint venture, except for potential onshore wind projects located close to Hydro’s smelters.
Hydro and Macquarie have a longstanding relationship within renewable energy. The companies have collaborated on several projects since 2017, and have developed 1.3 GW of renewable energy capacity, including several wind projects across the Nordics and a 456 MW onshore wind farm in Brazil. These projects include power purchase agreements with Hydro to help decarbonize its operations.
New aluminum alloy could drive the evolution of car engines
Scientists from the University of Alberta in Edmonton, Canada, discovered a new complex concentrated alloy. It’s made from aluminum and nickel that can withstand high temperatures and corrosive environments. The new alloy could be used for combustion engines that use 100% hydrogen, it was reported this week. The article claims these material breakthroughs will help make hydrogen power – whether in fuel cell vehicles or power plants – go mainstream.
Hydrogen comes with some challenges as it burns at high temperatures (around 600–1,500 degrees Celsius) compared to other fuels. This increased temperature means components of any type of hydrogen combustion engine need to withstand such a high-heat environment and remain resistant to corrosion due to steam.
The new super alloy of aluminum and nickel could be the key ingredient for hydrogen engines of the future. The research team at the University of Alberta detailed the attributes of this complex concentrated alloy (CCA), identified as AlCrTiVNi5, in a new paper published earlier this month in the journal Materials Today.
Alcoa makes first sales of its non-metallurgical alumina brand
Alcoa has made its first sales of its EcoSource non-metallurgical alumina (NMA) brand with six customers between 2023–24, it was announced this week.
EcoSource NMA is a part of Alcoa’s sustainable product family called Sustana. First launched in 2020 for smelter-grade alumina applications (SGA), EcoSource is the world’s first and only low-carbon alumina brand offered as both SGA and NMA. For non-metallurgical alumina, this includes hydrates and calcined products. NMA is used in water treatment applications, flame retardants, ceramic tiles, glass, refractory, and other manufacturing applications.
EcoSource, in both SGA and NMA, is sourced from Alcoa’s global refining system, which has an average carbon dioxide equivalent intensity (CO2e) that is below 0.6 tons per ton of alumina produced, which includes Scope 1 and Scope 2 emissions from bauxite mining and alumina refining.
Rusal embarks on import substitution program
Russia’s Rusal has reportedly started a phased switch of automation systems to domestic technology to reduce dependence on foreign suppliers. The aluminum producer has traditionally relied on Western engineering and technology companies for much of its equipment, but they have shunned Russia since the country invaded Ukraine in 2022.
Russian-made automation systems were tested at a pilot project in the Krasnoyarsk aluminum smelter. Sayanogorsk is expected to follow. In all, automation equipment is being replaced at six locations and 20 more are earmarked for the change by year-end, AK&M Information Agency reported. UC Rusal’s program is planned to finish in 2031. The import-substitution is estimated to cost RUB20 billion (USD$225 million) – an amount which may increase during implementation.
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Marziyeh Horeh
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CRU aluminum news roundup
A roundup of this week's CRU aluminum news.
CRU aluminum news roundup
A roundup of this week's CRU aluminum news.