en.Wedoany.com Reported - Hydro and Nexans have signed a five-year long-term agreement to supply approximately 85,000 tons of low-carbon aluminum rods between 2026 and 2030 for Europe's power transmission and distribution infrastructure.
The contract aims to support the modernization and decarbonization of Europe's power grid by supplying aluminum produced using renewable energy in Norway. These aluminum rods, manufactured at Hydro's plant in Karmøy, Norway, will be used in power cable solutions such as medium-voltage grids, overhead transmission lines, and high-voltage submarine connections.
"Europe's shift from fossil fuels to domestically produced renewable energy is driving strong demand for modernized power infrastructure. Our goal is to work with partners like Nexans to ensure a stable and reliable supply of low-carbon aluminum solutions needed for Europe to strengthen its grid, competitiveness, and energy security," said Hanne Simensen, Executive Vice President of Hydro Aluminium Metal.
Accompanying the agreement is Hydro's investment in increasing aluminum rod production capacity at its Karmøy primary aluminum plant. The company stated that this investment can boost low-carbon aluminum output to meet Europe's growing demand for power infrastructure. Aluminum has been classified as a critical raw material by the European Union, with Norway, as a strategic supplier, accounting for approximately 40% of Europe's primary aluminum production.
The aluminum supplied under the contract will be produced using Hydro's low-carbon aluminum product line, Hydro Reduxa, which has a verified carbon footprint of less than 4.0 kg CO₂ per kg of aluminum, less than one-third of the global average.
"Europe's electrification goals depend not only on cleaner energy production but also on building the necessary infrastructure to transmit power efficiently and reliably. This agreement with Hydro enhances the resilience of our supply chain while supporting low-carbon electrification. Securing long-term access to responsibly produced aluminum is critical to achieving the key grid infrastructure Europe needs over the next decade," said Vijay Mahadevan, CEO and COO of Nexans Europe.
Both companies believe that the agreement strengthens their joint commitment to supporting Europe's energy transition through long-term industrial cooperation. In the context of Europe's grid expansion and modernization, reliable access to critical raw materials is considered a key factor in avoiding supply chain bottlenecks and ensuring the execution of infrastructure projects.
