Alumina refinery in Brazil to switch to natural gas

US-based New Fortress Energy (NFE) announced September 9 that it reached a 15-year agreement to supply natural gas to an alumina refinery in Brazil.

NFE said it agreed to commercial terms with Norwegian aluminium and renewable energy company Norsk Hydro. The Norwegian company is in the process of converting an alumina refinery in Brazil to run on natural gas rather than fuel oil.

“We are excited to partner with Hydro to transition the Alunorte refinery to a cleaner fuel and to support Hydro’s global sustainability and environmental commitment,” NFE’s CEO Wes Edens said. “This is a great example of how our LNG terminals can accelerate the energy transition in Brazil.”

The company in June purchased LNG volumes from undisclosed distributors that will satisfy “approximately 100%” of its needs for five terminals across the Caribbean, Mexico and Central America for the next six years.

Energy companies are working to push industries with a heavy environmental footprint over to cleaner fuels. Mining giant Rio Tinto in June teamed up with the Australian Renewable Energy Agency (ARENA) to investigate switching from natural gas to hydrogen at an alumina refinery in the country.

NFE as part of the agreement will supply the Norwegian company with about 1mn gallons of LNG per day from a receiving and regasification terminal in northern Brazil. That facility will be up and running by the first quarter of next year, and the refinery itself should complete its transition by 2023.