NKT has entered into a supply agreement with Hydro for the supply of low-CO2e-footprint aluminum until 2033. The estimated value of the contract is approximately 1 billion euros and is intended to ensure the production of medium and high-voltage cables. Aluminum is a critical raw material in the energy transition, and the agreement supports NKT's goal of reducing CO2e emissions in cable production, the cable manufacturer said in a statement.
The agreement includes the supply of Hydro's REDUXA 4.0, which has a CO2e footprint of less than 4.0 kg CO2e per kg aluminum. NKT will also have first right to future, even lower CO2e variants. The deliveries will primarily go to the medium voltage plants in Falun and Asnæs as well as high voltage projects in Karlskrona.
- This supply agreement with Hydro not only guarantees a long-term, European supply of low-carbon aluminum, it also strengthens our position as a leader in sustainability in the cable industry. It supports our strategy to continuously reduce the carbon intensity of our power cables, thereby supporting both our own short- and long-term goals and our customers' decarbonization ambitions. Given the current geopolitical landscape, it is important to ensure reliable, local supply chains, says NKT CEO Claes Westerlind.
To support the agreement, Hydro has announced an investment of 140 million euros in a new foundry, which will ensure local and sustainable production. The two companies have also entered into a joint plan for further decarbonization of deliveries towards 2030.
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