Norsk Hydro, a Norwegian aluminum and renewable energy company, is planning an 84GWh pumped storage project in Luster Municipality, Norway.

The Illvatn project, with an estimated price tag of NOK1.2 billion (US$113 million), is expected to begin construction in 2025, targeting 2028 or 2029 for full operation.

“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, as well as take better care of water resources with minimal environmental footprint. Our ambition for the project is ‘net-zero’ loss of prioritized nature,” says Kari Ekelund Thørud, executive vice president of hydro energy with Norsk Hydro.

The power plant will pump water from Fivlemyrane reservoir, located 1018 meters above sea level (masl), to Illvatn reservoir, located at 1382 masl. Simultaneously, the reservoir capacity in Illvatn will be increased by constructing a new drainage tunnel that will lower the lowest regulated water level.

Norsk Hydro said this approach will reduce water loss in the Fortun system during summer months and boost production during periods of high power demand during winter season.

In April 2020, the Norwegian Ministry of Energy granted Norsk Hydro a concession to develop the Illvatn pumped storage power plant. An application for a plan change is being processed by the Norwegian Water Resources and Energy Directorate (NVE). The project’s implementation depends on that application’s acceptance, with the final investment decision expected by the second quarter of 2025.

Hydro claims it produces aluminum in Norway with a carbon footprint that is about 75% lower than the global average. Its goal is to achieve zero-carbon aluminum by 2050. Hydro’s Norwegian aluminum plants are mainly covered by long-term power contracts until 2030, but the company stressed it is “urgent” to secure new contracts beyond this period.

Norsk Hydro is working to mature hydropower projects at several locations. In addition to the Illvatn project, Norsk Hydro was also granted a concession to build the Øyane power plant in the same watercourse. The company noted that the profitability of the Øyane project is more challenging, and it is currently evaluating its viability.

Another project under development in Norway is a new power plant at Torolmen, in the Årdal municipality, with an estimated annual production of around 30GWh. The total investment for this project could reach NOK290 million (US$27.4 million), with potential construction starting as early as 2027.

In Røldal-Suldal, Norsk Hydro and Lyse are collaborating to upgrade and expand existing facilities. This project could increase annual power production by 800 GWh and capacity by 650 MW. The total investment is estimated to be up to NOK7 billion to 8 billion, (US$660 million to $756 million), with a possible construction start in 2027. Norsk Hydro holds a 25.6% ownership share in the Røldal-Suldal facilities.