Norsk Hydro, a leading Norwegian aluminum and renewable energy company, has announced plans for an 84GWh pumped storage project in Luster Municipality, Norway. The Illvatn project, estimated to cost NOK 1.2 billion (approximately $113 million), aims to commence construction in 2025, with a target for full operational status by 2028 or 2029.
Kari Ekelund Thørud, executive vice president of hydro energy at Norsk Hydro, emphasized the project’s meticulous development, stating, “We have carefully developed this project over an extended period, in close dialogue with authorities and the local community. With this project, we can increase production, reservoir capacity, and efficiency from our facilities in Fortun while taking better care of water resources with a minimal environmental footprint. Our ambition for the project is ‘net-zero’ loss of prioritized nature.”
The power plant will utilize water from the Fivlemyrane reservoir, situated at 1,018 meters above sea level, and pump it to the Illvatn reservoir, located at 1,382 meters. Additionally, a new drainage tunnel will be constructed to enhance the reservoir capacity at Illvatn by lowering the regulated water level.
This strategy is expected to minimize water loss in the Fortun system during the summer and increase energy production during peak winter demand. In April 2020, the Norwegian Ministry of Energy granted Norsk Hydro a concession to develop the Illvatn pumped storage power plant. A plan change application is currently under review by the Norwegian Water Resources and Energy Directorate (NVE), with the final investment decision anticipated by the second quarter of 2025.
Norsk Hydro claims its aluminum production in Norway has a carbon footprint approximately 75% lower than the global average, with a goal of achieving zero-carbon aluminum by 2050. While Hydro’s Norwegian plants are primarily secured through long-term power contracts until 2030, the company has stated that it is “urgent” to establish new contracts for the period beyond.
In addition to the Illvatn project, Norsk Hydro has received a concession to develop the Øyane power plant within the same watercourse, although the project’s profitability is under evaluation. Another initiative is the planned power plant at Torolmen in Årdal municipality, projected to produce around 30GWh annually, with total investment potentially reaching NOK 290 million ($27.4 million) and construction starting as early as 2027.
Furthermore, Norsk Hydro is collaborating with Lyse in Røldal-Suldal to upgrade and expand existing facilities. This venture could increase annual power production by 800 GWh and capacity by 650 MW, with a total investment estimated between NOK 7 billion and 8 billion ($660 million to $756 million), and construction potentially beginning in 2027. Norsk Hydro holds a 25.6% ownership stake in the Røldal-Suldal facilities.
Related topics:
