Shell Energy UK Limited (“Shell”) has signed an agreement with ALFED Member, Norsk Hydro ASA (“Hydro”), a global leader in aluminium and renewable energy, to help decarbonise its UK operations. The three-year agreement will cover the annual supply of 144 gigawatt hours of natural gas and 56 gigawatt hours of renewable electricity to the company’s UK sites.
As part of the deal, Shell Energy will supply electricity backed by Renewable Energy Guarantees of Origin (REGO) certificates* generated from the Rhyl Flats Windfarm(1). Situated 8km off the coast of Llandudno, the 25-turbine site has 90MW of installed capacity. The ability to provide 100% renewable electricity demonstrates Shell Energy’s ability to help its customers decarbonise their operations and accelerate their transition towards net-zero emissions.
Hydro is headquartered in Norway, with operations around the world in a broad range of markets including aluminium production, energy, metal recycling, renewables and battery manufacturing. In the UK, its primary activities include extrusion, fabrication, recycling, die manufacturing, surface treatment and thermal break.
Hydro is intent on leading the way towards a more sustainable future and creating more viable societies by turning natural resources into products and solutions in innovative and efficient ways. Its product portfolio continues to evolve, with sustainable offerings that are significantly less carbon intensive (per kg) to produce than the primary global average of virgin aluminium(2), while the company is also working hard to accelerate its transition to net-zero emissions.
Lars Lysbakken, Energy Portfolio Manager at Hydro, commented: “While extensive research and development is helping to significantly lower the carbon intensity of our products, looking for new and innovative solutions to help decarbonise our wider operations is considered a board-level priority.
“When it came to finding the perfect energy partner, we wanted to identify a long-term collaborator that could support our transition to net-zero. Shell Energy demonstrated extensive understanding of our business, our sector, and our ambitious decarbonisation roadmap.
“The ability to provide REGO certificates from the Rhyl Flats Offshore Wind Farm was another important part of the agreement. While we’re committed to using less energy, it’s positive to know that our operations will now be powered entirely by asset-specific renewable electricity.”
In 2022 alone, Shell invested $4.3 billion in low-carbon energy solutions(3), and has already reduced its own Scope 1 and 2 absolute emissions by 30% (4). To help to transform the energy system, the company is focused on driving a shift towards renewable electricity(5) developing low and zero-carbon alternatives to traditional fuels (including biofuels, hydrogen, and other low- and zero-carbon gases); working with its customers to decarbonise their use of energy; and addressing any remaining emissions from conventional fuels with solutions such as carbon capture and storage and carbon credits(6).
Greg Kavanagh, Head of Industrial and Commercial Sales at Shell Energy added: “Rather than a transactional agreement, we see our contracts as long-term strategic collaborations that provide Shell Energy with the opportunity to accelerate customer progress in reaching net-zero emissions.
“In the case of Hydro, we were able to offer a solution that perfectly aligned to its sustainability ambitions. We’re looking forward to working closely with the company to offer our knowledge, guidance and support over the longer term.”
- Main site for the first 12 months of the contract. More information can be found here: https://coflein.gov.uk/en/site/240657/
- https://www.hydro.com/en-GB/aluminium/products/low-carbon-and-recycled-aluminium/
- https://reports.shell.com/energy-transition-progress-report/2022/financial-framework/investing-in-net-zero.html
- https://reports.shell.com/energy-transition-progress-report/2022/our-performance/absolute-emissions-progress.html
- https://reports.shell.com/energy-transition-progress-report/2022/decarbonising-our-portfolio/transforming-the-energy-system.html
