Aluminium producer Norsk Hydro will invest 320 million Norwegian kroner (US$33.2 million) to upgrade the Karmøy aluminium smelter.
The investment is contingent on a final decision anticipated this autumn, the Norwegian company said. Norsk Hydro will finance the project with both internal and external sources.
Norsk Hydro will replace the 22 kV switchgear to the plant and upgrade part of the anode rodding line, in order to ensure power supply. The company will also install an automatic transportation to eliminate traffic and improve safety.
The company will kick off the project in the December quarter this year, and aims to complete the upgrade by the end of 2024, Norsk Hydro said.
The upgrade will "secure a robust power supply for the decades to come," head of primary production Ola Saeter said.
Norsk Hydro said it is committed to producing "low-carbon hydropower-based aluminium for the European market."
Karmøy produces 270,000 tonnes of primary aluminium on an annual basis.
The Karmøy smelter operates two production lines, the AP18 and Hydro's technology pilot, which produces 75,000 tonnes of aluminium per year and uses 15% less energy. The upgrade will be on the AP18 line, Hydro said.
