NKT pursues shift to low-carbon aluminium with latest partnership

NKT seeks to cut carbon footprint of power cables with latest partnership

Subsea power cable manufacturer NKT and aluminium and energy company Hydro have entered into a strategic partnership to accelerate the shift towards low-carbon aluminium and increase its role in reducing the carbon footprint of power cables.

NKT's Will Hendrikx and Hydro's Eivind Kallevik. Source: NKT

As part of the partnership that aims to further decarbonize the power cable supply chain, the two companies will collaborate on low-carbon aluminium solutions for the production of medium- and high-voltage power cables.

The collaboration is expected to help their journeys 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 by 27.5% by 2030 compared to 2019.

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“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,” said Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal.

“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.”

NKT and Hydro will also collaborate on minimizing emissions associated with warehousing, logistics and transportation, as well as opportunities for efficient closed-loop supply chains. Towards 2030, the partners will collaborate on R&D and product development to explore aluminium wire rod applications that allow for even lower carbon footprint.

Building on several pilot projects in 2023, NKT will integrate Hydro’s low-carbon aluminium (REDUXA 4) into its medium-voltage power cable solutions in 2024, and later within some of its high-voltage power cable projects.

“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,” said Will Hendrikx, COO and Deputy CEO at NKT.

“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.”

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Speaking about other recent emission reduction initiatives coming from NKT, the Danish company in September 2023 certified its cable-laying vessel (CLV) NKT Victoria to use biofuels such as hydrotreated vegetable oil (HVO) as part of its decarbonization goals.

The certification is said to allow the reduction of carbon footprint from the vessel’s fuel consumption by more than 98%.