Norsk Hydro: Hydro invests NOK 1.2 billion to build Illvatn pumped storage power plant

14 Nov 2025 07:00 CET

Hydro has made the final investment decision for its largest hydropower
development in over 20 years. Construction of the Illvatn pumped storage power
plant in the Luster Municipality will begin this November, with operations
expected to start in 2030.

The new pumped storage plant in the Luster Municipality in Norway will provide
107 GWh of new annual renewable power production, dedicated to Hydro's aluminium
production. The gross investment amounts to NOK 2.5 billion. Through Norway's
cash flow tax scheme for hydropower investments, Hydro's net investment after
tax is estimated at NOK 1.2 billion.

"Renewable energy has never been more important. We are now making the largest
investment in our hydropower portfolio since the development of the New Tyin
power plant in Årdal in 2004. The Illvatn pumped storage plant will contribute
increased energy production, reservoir capacity, as well as installed power
capacity from our facilities in Fortun. As we take this major step, our ambition
is net-zero loss of prioritized nature. With this, we are setting a new standard
for our hydropower development," says Kari Ekelund Thørud, Executive Vice
President of Hydro Energy.

Contributing to more power and balance in the power system

The planned pumped storage plant will pump water from the reservoir at
Fivlemyrane (1,018 meters above sea level) to the Illvatn reservoir (1,382
meters above sea level). The investment includes the construction of a new
tunnel and the reservoir capacity will be increased by lowering the minimum
regulated water level in Illvatn. By pumping water to Illvatn, water that would
otherwise be lost during the summer months, water loss in the Fortun system is
reduced, and total production increases during winter when power demand is high.

As part of the project, Hydro will also build a new 13 kilometer power line from
Fivlemyr to Sveinsøystølen. The plan is to build 48 power towers made with
aluminium. By replacing traditional composite and steel with aluminium, Hydro is
paving the way for a new and sustainable approach to power grid development.

Power for industrial development

Access to renewable energy and modern technology makes Norwegian industry world
leading. To succeed in reducing emissions in existing industry and developing
new industry, Norway needs more renewable power. Illvatn will be part of Hydro's
power portfolio supplying renewable energy to aluminium production in Norway.

"We need to develop more power and grid infrastructure to secure jobs, new
industry, and welfare. As a major industrial player, we want to contribute to
building out this power. Increased and more flexible hydropower production is an
important and integrated part of our efforts to ensure power at competitive
prices for Hydro's Norwegian aluminium plants," says Thørud.

Hydro currently produces aluminium in Norway with a carbon footprint
approximately 75 percent lower than the global average. The goal is to produce
zero carbon aluminium by 2050.



Investor contact:
Elitsa Blessi
+47 91775472
Elitsa.Blessi@hydro.com

Media contact:
Anders Vindegg
+47 93864271
Anders.Vindegg@hydro.com

More information:
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