- Norsk Hydro Slovalco plant restart supports aluminum production recovery.
- Production revival depends on regulatory approval and future power agreements.
Norsk Hydro ASA has signed an agreement with the government of Slovakia that creates the conditions required to restart part of the primary aluminum production at its Slovalco facility. The agreement allows the company to resume the first 75,000 tonnes of the plant's total annual production capacity of 175,000 tonnes, provided that the updated indirect carbon cost compensation scheme receives approval from the European Union through the European Commission. This development marks a significant milestone for the facility after production was previously suspended because of challenging market conditions.
The Slovalco plant significantly reduced its operations during 2022 as soaring electricity prices made aluminum production economically unsustainable. To bring the facility back into operation, Slovalco plans to invest EUR 100 million. Production is expected to resume during the fourth quarter of 2026, and the restart is projected to preserve and create more than 200 regional jobs. The investment is intended to strengthen industrial activity while gradually restoring aluminum manufacturing capacity under improved economic conditions.
The agreement also establishes a long-term operating framework designed to support sustainable aluminum production. A central element is the compensation mechanism for indirect carbon costs associated with the European Union Emissions Trading System (ETS), helping offset electricity-related expenses faced by energy-intensive industries. In parallel, Slovalco has concluded a long-term commercial power purchase agreement with Vodohospodárska výstavba, š.p., providing an important source of electricity for future operations.
Slovalco Aluminum Production Restart Timeline
| Milestone | Details |
|---|---|
| Plant Capacity | 175,000 tonnes annually |
| Initial Restart | 75,000 tonnes annually |
| Investment | EUR 100 million |
| Expected Production | Q4 2026 |
| Regional Employment | More than 200 jobs supported |
The restart of the remaining 100,000 tonnes of annual production capacity will depend on favorable framework conditions extending beyond 2030, together with the availability of additional long-term electricity supply contracts. These future requirements will determine whether the facility can fully restore its original production capability while maintaining long-term operational competitiveness.
Frequently Asked Questions
Why is the Slovalco plant restarting only part of its production?
The initial restart covers 75,000 tonnes of annual aluminum production because it depends on the current agreement between Norsk Hydro and the Slovak government, along with approval of the updated indirect carbon cost compensation scheme by the European Commission. Restarting the remaining capacity will require favorable policy conditions beyond 2030 and additional long-term power supply agreements to ensure economically sustainable operations for the facility.
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