Norsk Hydro
A Norwegian industrial group focused on aluminum, aluminum products and renewable energy.
Last updated August 31, 2026
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Overview
Norsk Hydro ASA, commonly known as Hydro, is a Norwegian industrial company whose principal businesses are aluminum and renewable energy. Founded in 1905, it began by commercializing a method for fixing atmospheric nitrogen into fertilizer. The process, developed by scientist Kristian Birkeland and industrialist Sam Eyde, required abundant electricity, so Hydro’s earliest factories were built alongside Norwegian waterfalls and helped stimulate the development of Notodden and Rjukan. Electricity generation has remained part of the company’s identity even after its business center of gravity moved from fertilizers to metals. Hydro expanded from nitrogen chemicals into aluminum, magnesium and related industrial materials during the twentieth century. The acquisition of Årdal og Sunndal Verk in 1986 established the core of its modern aluminum business. Subsequent investments and acquisitions gave the company activities across much of the aluminum value chain, including bauxite mining, alumina refining, primary aluminum production, casting, rolling, extrusion and recycling. Hydro’s aluminum operations have included mines and refineries in Brazil, smelters and processing facilities in Norway and other countries, and downstream plants serving transportation, construction, packaging, consumer products and industrial customers. The company also became a significant oil and gas producer. It participated in North Sea exploration, acquired Saga Petroleum and operated petroleum assets before merging its oil and gas activities with Statoil in 2007. The combined company was initially named StatoilHydro and later became Equinor. Hydro’s fertilizer activities were separated in 2004 into Yara International, leaving Hydro more concentrated on aluminum and energy. Important international expansion followed. In 2010 Hydro acquired major bauxite, alumina and aluminum assets from Vale in Brazil and formed the Qatalum joint venture in Qatar with QatarEnergy. In 2013 it combined its extrusion operations with Sapa, and in 2017 acquired Orkla’s remaining interest, bringing the extrusion business fully into Hydro as Extruded Solutions. Hydro also established Hydro Global Business Services in 2020 to provide finance, information technology and human-resources support across the group. Hydro describes its competitive position around integrated production, access to renewable electricity, technical aluminum expertise and lower-carbon products. Its energy activities include substantial Norwegian hydropower generation and long-term renewable power procurement, including an agreement connected with the Fosen Vind wind project. The company operates internationally and has reported activities in roughly 50 countries, while Norway remains central to its ownership, headquarters, power generation and historical production base. The Norwegian state remains the largest shareholder. Hydro’s principal challenges include volatile aluminum and energy prices, mining and refinery environmental risks, decarbonization of energy-intensive smelting, and competition in increasingly recycled and low-carbon aluminum markets.
History
Norsk Hydro was founded in December 1905 by Sam Eyde and Kristian Birkeland, with financing from the Wallenberg family and French banks. Its original purpose was to commercialize the Birkeland–Eyde process, which used electric arcs to fix nitrogen from air for artificial fertilizer. Because the process consumed large amounts of electricity, Hydro developed power generation at waterfalls including Svelgfossen and Rjukan. Its first factory opened at Notodden in 1907, followed by the Rjukan works in 1911. Production later expanded to Glomfjord and Herøya, where the company could combine industrial production, transport and port facilities. The original fertilizer process became less competitive after the spread of the Haber–Bosch method. Hydro therefore partnered with IG Farben in 1927 to obtain access to newer technology. During the Second World War, the Rjukan works produced heavy water, making the site strategically important and exposing it to Allied bombing and sabotage. Hydro also participated in wartime industrial projects involving aluminum and magnesium facilities, some of which were destroyed before completion. After the war Hydro broadened its materials activities. Årdal og Sunndal Verk opened an aluminum plant in 1946, and Hydro acquired the state-owned company in 1986. Aluminum and magnesium production expanded through facilities at Herøya, Karmøy, Glomfjord and elsewhere. Hydro became involved in petroleum exploration in the North Sea during the 1960s, later acquiring Saga Petroleum and becoming a major Norwegian oil and gas operator. Its service-station activities were eventually sold, while its fertilizer division was separated into Yara International in 2004. The 2007 merger of Hydro’s oil and gas business with Statoil created StatoilHydro, later renamed Equinor. Hydro consequently concentrated on aluminum and energy. It acquired Vale’s Brazilian bauxite, alumina and aluminum assets in 2010, including interests in the Paragominas mine, Alunorte refinery and Albras smelter. The same year, Hydro and QatarEnergy inaugurated Qatalum, a major aluminum venture in Qatar. Hydro expanded downstream through its combination with Sapa in 2013 and full acquisition of the business in 2017. In the twenty-first century, Hydro has increasingly emphasized renewable electricity, recycling and low-carbon aluminum. It remains a major Norwegian hydropower producer and has entered long-term renewable power arrangements, including procurement associated with Fosen Vind. The company established Hydro Global Business Services in 2020. Its current business faces environmental scrutiny, energy and commodity-price volatility, and the technical challenge of reducing emissions from mining, refining and smelting while maintaining a globally integrated supply chain.
- 2020
Hydro Global Business Services established
[1]The group created a shared-services organization for finance, information technology and human resources.
- 2017
Full ownership of Sapa
[1]Hydro acquired Orkla’s stake and brought Sapa into the company as Extruded Solutions.
- 2013
Sapa extrusion joint venture formed
[1]Hydro combined its extrusion activities with Sapa in a joint venture with Orkla.
- 2010
Vale assets acquired and Qatalum launched
[1]Hydro expanded its Brazilian upstream and refining assets and inaugurated the Qatalum joint venture in Qatar.
- 2007
Petroleum merger with Statoil
[1]Hydro’s oil and gas operations joined Statoil in StatoilHydro.
- 2004
Yara demerger
[1]Hydro’s agricultural and fertilizer business became the separately listed Yara International.
- 1986
Årdal og Sunndal Verk acquired
[1]The acquisition established the foundation of Hydro’s modern aluminum division.
- 1927
IG Farben partnership
[1]Hydro partnered with IG Farben to access Haber–Bosch fertilizer technology.
- 1911
Rjukan plant opens
[1]A second major fertilizer site opened at Rjukan, supported by newly developed hydropower.
- 1907
Notodden factory opens
[1]Hydro began industrial fertilizer production at Notodden.
Products and positioning
An integrated, sustainability-oriented aluminum and renewable-energy group emphasizing low-carbon production, recycling, resource integration and industrial applications.
Mining · 2010
Bauxite
Hydro’s Brazilian mining activities supply bauxite as the raw material for alumina refining and primary aluminum production. The Vale transaction gave Hydro control or significant interests in major Brazilian resources, including the Paragominas mine.
Refining · 2010
Alumina
Alumina is the intermediate material refined from bauxite before electrolytic smelting. Hydro’s Brazilian portfolio includes a major interest in Alunorte, one of the world’s largest alumina refineries outside China.
Metals · 1946
Primary aluminum
Hydro produces primary aluminum through smelters in Norway, Brazil, Qatar and other locations. The metal is supplied as standardized and value-added products for industrial, transport, construction and consumer applications.
Downstream aluminum
Rolled aluminum
Hydro’s rolling operations produce sheet and other rolled forms for applications such as building products, transport, packaging and industrial manufacturing.
Downstream aluminum · 2013
Extruded aluminum
The Extruded Solutions business produces shaped aluminum profiles and components. These products serve automotive, building, engineering and consumer markets where lightweighting, corrosion resistance and design flexibility are valuable.
Recycled aluminum
Hydro CIRCAL
Hydro CIRCAL is a recycled-content aluminum offering designed for customers seeking lower-impact material and traceable use of post-consumer scrap.
Low-carbon aluminum
Hydro REDUXA
Hydro REDUXA is positioned as a low-carbon primary aluminum product, using renewable electricity and documented product emissions to address customers’ decarbonization goals.
Energy · 1905
Renewable energy
Hydro owns and operates Norwegian hydropower assets and purchases renewable electricity for industrial operations. Energy supports both the group’s aluminum production and its wider low-carbon strategy.
Controversies
2021
Brazilian communities file pollution lawsuit against Norsk Hydro
A group of Brazilian communities filed a lawsuit against Norsk Hydro before the District Court of Rotterdam, seeking compensation over alleged toxic-waste disposal and other effects of Hydro's installations in the region. The allegations are not presented as a court determination.
2018
Barcarena water-discharge controversy
Hydro’s Pará operations in Brazil faced allegations that untreated or contaminated water had entered the environment through unauthorized discharges. Production was reduced while the issue was investigated. Hydro acknowledged unauthorized spills but disputed claims that its activities had caused significant pollution of the river, citing its own and independent assessments.
Marketing campaigns
- Hydro CIRCAL
Europe · Global
A product and circularity initiative promoting aluminum made with verified recycled post-consumer material and intended to help customers reduce material-related emissions.
Outcome. Established as a branded recycled-aluminum offering.
- Hydro REDUXA
Global
A low-carbon aluminum initiative based on renewable electricity and product-carbon-footprint documentation.
Outcome. Created a branded low-carbon primary-aluminum product line.
Brand decisions
2017
Take full ownership of SapaM&ABackground
Hydro had operated Sapa as a 50/50 joint venture with Orkla since 2013.
Action taken
Hydro acquired Orkla’s remaining interest and integrated Sapa as the Extruded Solutions business area.
Aftermath
Hydro gained full control of a large international extrusion network and broadened its downstream aluminum offering.
Agreed enterprise value. NOK 27 billion for 100% of Sapa (2017 transaction)
2010
Acquire Vale’s aluminum assetsM&ABackground
Hydro sought greater control over bauxite and alumina supply and a more vertically integrated aluminum portfolio.
Action taken
Hydro acquired Vale’s Brazilian bauxite, alumina and aluminum assets, including major interests in Paragominas, Alunorte and Albras.
Aftermath
The transaction substantially expanded Hydro’s upstream and refining scale and strengthened its position as an integrated global aluminum producer.
Transaction value. USD 4.9 billion (2010 transaction)
2007
Merge oil and gas operations with StatoilM&ABackground
Norway’s two major state-linked petroleum groups proposed combining their upstream and related oil and gas activities.
Action taken
Hydro transferred its petroleum operations into StatoilHydro, which began operating in October 2007.
Aftermath
Hydro exited the petroleum business and later returned to a name centered on aluminum and renewable energy, while StatoilHydro was subsequently renamed Statoil and then Equinor.
2004
Separate fertilizer operations into YaraStrategyBackground
Hydro’s historical fertilizer business had become sufficiently distinct from its emerging aluminum and energy focus.
Action taken
Hydro demerged the agricultural division as Yara International and distributed the Yara shares to Hydro shareholders.
Aftermath
Hydro became more concentrated on aluminum, petroleum at that time, and energy, while Yara became an independent fertilizer company.
Recent events
Shell and Norsk Hydro agree to explore green hydrogen projects[6]
Reported:
Shell and Norsk Hydro signed a memorandum of understanding to explore joint green hydrogen production and supply projects, initially at sites in Europe.
Brazilian communities file pollution lawsuit against Norsk Hydro[5]
Reported:
A group of Brazilian communities filed a lawsuit against Norsk Hydro before the District Court of Rotterdam, seeking compensation over alleged toxic-waste disposal and other effects of Hydro's installations in the region. The allegations are not presented as a court determination.
Sources6 sources
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