Norway to build new pumped hydro storage plant to power renewable aluminum production

The municipality of Luster, in Norway, will be home to a new pumped hydro storage plant that will generate 107 GWh of renewable energy per year, intended to supply Hydro’s aluminum production. The gross investment reaches 2.5 billion Norwegian kroner, although thanks to the cash flow tax scheme for hydroelectric investments in Norway, the net investment after taxes is estimated to be 1.2 billion kroner.

Kari Ekelund Thørud, Executive Vice President of Hydro Energy, emphasized that “renewable energy has never been so important. This is the largest investment in our hydroelectric portfolio since the construction of the New Tyin plant in Årdal in 2004. The Illvatn pumping plant will increase energy production, reservoir capacity and installed power at our Fortun facilities, all with the aim of achieving zero net loss of priority natural areas.”

The project will allow water to be pumped from the Fivlemyrane reservoir, at 1,018 meters above sea level, to the Illvatn reservoir, at 1,382 meters. With the construction of a new tunnel and the reduction of the regulated minimum level of Illvatn, the capacity of the reservoir will be increased. This will reduce water loss during the summer months and allow for increased production during the winter, when electricity demand is higher.

In addition, Hydro will build a 13-kilometer power line between Fivlemyr and Sveinsøystølen, with 48 aluminum towers that will replace traditional materials such as steel and composites, promoting a more sustainable approach to electrical infrastructure.

The project will strengthen the competitiveness of Norwegian industry, which already produces aluminum with a carbon footprint 75% lower than the world average. Hydro anticipates that by 2050 all of its aluminum production in Norway will be carbon emission-free. Thørud emphasized that “developing more renewable energy capacity and a modern electricity grid is key to securing jobs, new industry and well-being, and to guaranteeing electricity at competitive prices for our aluminum plants.”