Hydro signs agreement for LNG supply to Alunorte

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Hydro has signed a 15-year agreement with New Fortress Energy (NFE) for the supply of Liquefied Natural Gas (LNG) to the Alunorte refinery in Brazil.

The fuel-switch agreement to supply LNG aims to reduce CO2 emissions at Alunorte. The project is part of Hydro’s climate strategy and global commitment to reduce its GHG emissions by 30 % by 2030. It is expected that NFE will supply Hydro Alunorte with 29.5 TBtu of natural gas annually from NFE’s Barcarena LNG receiving and regasification terminal located in the state of Pará, Brazil.

Alunorte will adapt the calcination process and part of the steam generation at the refinery to switch from fuel oil to natural gas as the energy source. The conversion is expected to be complete by the end of the first quarter 2023. The fuel switch will reduce the refinery’s annual CO2 emissions by 600,000 t.

Agreement with NFE for the supply of LNG is subject to final build decision

Alunorte is among the most energy-efficient alumina refineries in the world. The fuel switch to LNG is another step to improve our operations, driving sustainability and industry best practices to lower environmental impact,” says John Thuestad, executive VP for Hydro’s Bauxite & Alumina business.

The availability of natural gas is important for the industrial development in the Pará region and enables substitution of carbon-intensive fuels into natural gas with lower environmental impact. The Alunorte refinery will be an important gas consumer in Pará and therefore an enabler for establishing LNG supply in Pará state.

The agreement with NFE for the supply of LNG is subject to final build decision for the fuel switch project, expected by the end of 2021.

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