Norway-based recycling firm Norsk Resirk has signed an agreement to use Hydro's recycling plant in Holmestrand for recycling the cans.
The deal allows a shorter and environmentally friendly transport distance for over 6,200 metric tons of aluminum annually.
With the deal, Norsk Resirk will be capable of recycling cans and bottles with a return for deposit label.
Norsk Resirk CEO Kjell Olav Maldum said, "We are pleased that Hydro wants to recycle for us. This means that our deposit and collection system will be even more environmentally friendly."
Hydro president and CEO Svein Richard Brandtzæg said aluminum can be recycled over and over again with no loss in quality.
"Recycling uses only five percent of the energy needed to produce new metal," Brandtzæg added.
Earlier, Norsk Resirk announced plans of opening a new recycling facility for plastic bottles in the Heia industrial area in the town of Fetsund.
Image: From left: Norsk Resirk CEO Kjell Olav Maldum and Hydro president and CEO Svein Richard Brandtzæg,. Photo: Courtesy of Øyvind Breivik