LONDON Norsk Hydro ASA has signed an agreement with infrastructure project consultancy Serenity Capital Pte. Ltd. that could lead to the restart of magnesium production in Norway, the companies said.
Serenity subsidiary SilMag International AS will lease the land and infrastructure at Herøya, a fully owned subsidiary of Hydro. The agreement is conditional on Serenity securing necessary financing to fund the project.
Historically, Hydro produced magnesium as well as fertilizer and polyvinyl chloride (PVC) at Herøya. The company ceased production of magnesium in 2002, demerged the fertilizer business in 2004 and sold the PVC business, Hydro Polymers, in 2008.
Serenity said that its processes set new standards for "best available technology" and offer substantial production cost advantages for both silica and magnesium production.
"I am delighted at the prospect of introducing magnesium and silica production into Norway and Europe that is both highly cost competitive and sets new eco and environmentally friendly global standards," SilMag deputy chairman Per Bjørn Engseth said in a statement.
A version of this article was first published by AMM sister publication Metal Bulletin.