Norsk Hydro

Stock performance

History

Norsk Hydro was founded to produce nitrogen-based fertilizer using Norway's abundant hydroelectric power, an energy-intensive process that gave the company its name and its founding competitive logic. Over the twentieth century it diversified into oil and gas (later merged into Statoil/Equinor) and aluminum production, eventually narrowing to focus on aluminum and renewable energy as its core businesses following the 2007 divestment of its oil and gas division.

Business model

Norsk Hydro produces aluminum and aluminum products, from bauxite mining and alumina refining through smelting and rolled-products manufacturing, powered substantially by Norway's abundant hydroelectric electricity, which gives it one of the lowest-carbon aluminum production footprints in the industry. It also generates hydroelectric power directly.

Market position

Norsk Hydro is one of the largest aluminum producers in the world and a leader in low-carbon 'green aluminum' production, an increasingly valuable positioning as manufacturers seek lower-emissions materials. It competes with global aluminum producers including Alcoa and Rio Tinto's aluminum division.

Country impact

Norsk Hydro is one of the largest industrial companies in Norway, and its low-carbon aluminum production, powered by Norwegian hydroelectricity, is frequently cited as an example of how the country's clean energy abundance supports globally competitive heavy industry.