A unit of Norway’s Norsk Hydro has signed a memorandum of understanding with US LNG player New Fortress Energy with the aim to replace a major part of its current fuel oil consumption at the Alunorte alumina refinery in Brazil with natural gas.
Under the deal signed on Thursday, NFE expects to deliver a “minimum agreed amount” of natural gas to the refinery per year for a period of 15 years, it said in a statement.
In addition, natural gas would come from NFE’s Barcarena LNG regasification terminal, near the Hydro Alunorte refinery in state of Pará.
NFE expects to launch the Barcarena terminal in 2022. The firm acquired the FSRU-based project via the just completed Golar deal that included Hygo.
To remind, Hygo and Norsk Hydro have last year terminated a supply deal for the Alunorte alumina refinery in Brazil.
Hydro is converting the calcination process and part of the steam generation at the refinery from fuel oil in order to enable it to go on natural gas. This move could reduce emissions by approximately 20%.
“We look forward to this long-term partnership and are pleased to assist Hydro with the transition of the Alunorte refinery to utilizing a cleaner and more affordable supply of energy,” said Wes Edens, NFE chief executive.
Hydro is supporting use of LNG and natural gas in the state of Pará. Access to LNG will enable a more sustainable operation for Hydro, and also give access to natural gas for other industries and consumers in the state of Pará,” John Thuestad, executive vice president for Hydro’s Bauxite & Alumina business area, said.
The proposed agreement is subject to reaching commercial agreements and final documentation between the duo.
