Norsk Hydro ASA (NHYDY,NHYKF,NOH1.F,NHY.OL) Friday said it would be developing one of its largest hydropower project in Norway in more than 20 years. The company said that the construction of the Illvatn pumped storage power plant in Luster Municipality will begin in November, with operations expected to start in 2030.
The aluminium and renewable energy company said that the project will incur a total investment of 2.5 billion Norwegian Kroner, while Norsk Hydro's net investment after tax is estimated at 1.2 billion Kroner under Norway's cash flow tax scheme for the hydropower sector. The plant will add 107 GWh of annual renewable power dedicated to the company's aluminium production.
Hydro said that the Illvatn plant will pump water from the Fivlemyrane reservoir to the Illvatn reservoir, supported by a new tunnel and increased reservoir capacity through a lowered minimum water level. The company added that it will also construct a 13-kilometer power line from Fivlemyr to Sveinsystlen, featuring 48 aluminium power towers.
According to Norsk Hydro, the Illvatn project will strengthen the country's renewable energy supply and also support low-emission aluminium production.
On the Oslo Exchange, NHY.OL ended Thursday's trading at 74.38 Norwegian Kroner, up 0.30 percent.
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