Norsk Hydro ASA — Earnings Release 2021

Apr 7, 2021

Norsk Hydro: Hydro to explore hydrogen opportunities

Norsk Hydro: Hydro to explore hydrogen opportunities

Hydro is exploring the potential for developing and operating hydrogen

facilities to meet large internal demand as well as serving an external market,

leveraging the company's industrial and renewable power expertise.

"We see a substantial potential for industrial hydrogen consumption. Taking a

developer and operator role in the hydrogen sector represents an opportunity for

Hydro to reduce industrial CO2 emissions and develop a profitable and

sustainable business based on hydrogen," says Hilde Merete Aasheim, President

and CEO in Hydro.

Hydro has set out a clear strategic direction toward 2025 and aims to strengthen

its position in low-carbon aluminium, while exploring new growth opportunities

in recycling and new energy.

"Hydro has unique capabilities that set us apart from other industrial players

due to our own renewable power positions and competence, and large internal

demand for gas that can be replaced by green hydrogen solutions. We can

therefore build and develop a complete value chain for green hydrogen in

Norway," Aasheim says.

A developer and operator role for Hydro is in line with the company's internal

pipeline of possible hydrogen projects and would likely entail a full or partial

switch from gas to hydrogen in plants in several locations. A probable start to

this process would be to switch from gas to hydrogen at some of Hydro's aluminum

plants in Norway.

"We have large internal demand for gas used for heating in our casthouses and

anode production, and a hydrogen production facility could be placed near the

consumption. For Hydro it would contribute to our target of reducing our own CO2

emissions by 30% by 2030," Aasheim says.

Hydrogen technologies and their applications have been on Hydro's agenda

multiple times for several decades. Several elements have changed over the last

years, lifting the profitability in switching from gas to hydrogen at Hydro's

plants. EU and Norway's ambitions to decarbonize the economy by 2050 require

hydrogen as an important energy carrier, and support schemes are being put in

place. Additionally, technology cost is coming down and Norway is well-suited

for hydrogen development and use due to its attractive, renewable power.

Hydro will revert with more information about the options under evaluation and

the way forward at the company's first-quarter strategic update and results

presentation on April 27.

Investor contact:

Line Haugetraa

+47 41406376

Line.Haugetraa@hydro.com

Media contact:

Halvor Molland

+47 92979797

Halvor.Molland@hydro.com