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Released December 03, 2025 | GALWAY, IRELAND
en

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)


Summary

The largest pumped-storage hydro project in Norway for more than 20 years is set to be built in Illvatn in western Norway. Norsk Hydro will spend approximately 1.2 billion NOK (US$117 million) on the project.


The Project

Norsk Hydro (Oslo, Norway) has committed to building one of Norway's largest pumped hydro power projects in more than two decades. The aluminum, renewables and metals company will build the 48-megawatt (MW) Illvatn pumped-storage hydro plant in western Norway. It will provide 107 gigawatt-hours (GWh) of annual renewable energy for its aluminum production operations.

Construction has begun, with operations planned to start in 2030. The plant will pump water from Fivlemyrane to Illvatn to increase reservoir capacity and winter production, and includes a new 13-kilometer (km) power line that will be supported by 48 lattice power towers made from Hydro's aluminum. It will involve the construction of a new pumped storage power plant in Sogn and an 8-km tunnel from Fivlemyrane (1,018 meters above sea level) to Illvatn (1,382 meters above sea level). The company said that by pumping water to Illvatn - water that would otherwise be lost during the summer months - water loss in the Fortun system will be reduced and total production increased during winter when power demand is high.

"Renewable energy has never been more important," said Kari Ekelund Thørud, executive vice president of Hydro Energy. "We are now making the largest investment in our hydropower portfolio since the development of the New Tyin power plant in Årdal in 2004. The Illvatn pumped storage plant will contribute increased energy production, reservoir capacity, as well as installed power capacity from our facilities in Fortun. As we take this major step, our ambition is net-zero loss of prioritized nature. With this, we are setting a new standard for our hydropower development."

Lowering Aluminum Emissions

Norsk Hydro currently produces aluminum in Norway with a carbon footprint approximately 75% lower than the global average, according to the company. The goal is to produce zero-carbon aluminum by 2050. Since 1990, the company has cut emissions from its Norwegian smelters by more than 50% while increasing production by 40%. By 2030, it wants to cut total carbon emissions by 30% compared to a 2018 baseline and "deliver industrial scale pilot volumes based on emission free smelting technology."

In Norway, the company owns or partially owns and operates 17 hydroelectric power stations, producing about 9 terrawatt-hours (TWh) of electricity per year, much of which powers its aluminum operations. It is Europe's largest aluminum company, employing more than 18,000 people and with a global workforce of 32,000. Sunndal in Norway is home to the largest primary aluminum plant in Europe. Last month, Norsk Hydro signed a deal with carmaker Mercedes-Benz (Stuttgart, Germany) to supply low-carbon aluminum for its latest CLA electric vehicle (EV) as part of a broader strategy to reduce the environmental footprint of its EV production. Hydro's plant in Årdal, Norway, produces the metal using hydropower and includes roughly 25% recycled aluminum scrap in each batch. It emits 3 kilograms (kg) of CO2 per kg - 80% lower than the global average.

Hydropower in Norway

At the start of this year, Norway's power supply had an installed production capacity of 40,334 MW, with an estimated normal annual production of around 157 TWh. Roughly 88% of that was supplied by hydropower - something unique in Europe, where most nations rely on thermal power plants for electricity. In Norway, the backbone is 1,791 hydropower plants. Industrial Info is tracking 175 Norwegian hydro-related projects worth almost US$18 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Key Takeaways

  • Norsk Hydro is investing US$117 million to build a new pumped hydro project in Illvatn, Norway.
  • It will join 17 other of the company's hydropower plants, many used for powering its aluminum operations.
  • Hydropower supplies 88% of Norway's electricity.

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).

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