NKT and Hydro form strategic partnership to further decarbonize the power cable supply chain

NKT and Hydro have entered into a strategic partnership that will accelerate the shift towards low-carbon aluminium and increase its role in reducing the carbon footprint of power cables. The collaboration will aid both companies’ journey towards net zero by aligning common decarbonization targets for both primary and recycled aluminium. For NKT, the partnership will support it in reaching the corporate target of reducing scope 3 emissions with 27.5% by 2030 compared to 2019.

- We are proud to form this strategic partnership with our long-term partner, Hydro. They have a proven track record of delivering low-carbon aluminium, and will help us satisfy the growing demand among Distribution System Operators and Transmission System Operators for solutions with a lower carbon footprint. Despite working in an energy intensive sector, Hydro is leading its industry towards more sustainable solutions with strong emphasis on decarbonization, as well as biodiversity and social responsibility. We look forward to our continued collaboration with Hydro in the coming years, said Will Hendrikx, COO and Deputy CEO at NKT.

The partnership is based on more than 50 years of collaboration which now forms the foundation for a strategic partnership to drive both company’s sustainability strategies forward, together. The partners will also collaborate on minimizing emissions associated with warehousing, logistics and transportation, as well as opportunities for efficient closed-loop supply chains. Towards 2030, Hydro and NKT will collaborate on R&D and product development to explore aluminium wire rod applications that allow for even lower carbon footprint.

- Power cables play a vital role in transmitting and connecting renewable energy, and the power infrastructure segment has a significant potential for increased use of aluminium. Our joint roadmap with NKT will pave the way for aluminium and thereby reduce the embedded carbon in Europe’s power grid. With this collaboration we continue our strategy of entering into long-term partnerships with sustainability leaders in industries that are crucial for the green transition. NKT and Hydro share a focus on reducing our impacts across the value chain from mine to finished power cable. We look forward to collaborating on all emissions scopes to pioneer completely new ways of working. Together we can change the game, said Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal in Hydro.

Building on several successful pilot projects in 2023, NKT will integrate Hydro's low-carbon aluminium (REDUXA 4¹) into its medium-voltage power cable solutions in 2024, and later within some of its high-voltage power cable projects. This aligns with NKT's sustainability strategy, contributing to the company's ambitions to decarbonize and offer more sustainable solutions to its customers.

 

¹ Hydro defines low-carbon aluminium as having a footprint below 4.0 kg CO2e per kg aluminum, which is one-fourth the global average. Learn more here: https://www.hydro.com/en-DK/aluminium/products/low-carbon-and-recycled-aluminium/low-carbon-aluminium/hydro-reduxa/