European renewable energy producer Statkraft has partnered with Aker Horizons for a 600 MW green hydrogen and ammonia project at Kvandal in Narvik, Norway and to establish a jointly owned company, Narvik Green Ammonia DA.
The plant, currently under development, is expected to produce 1,000 - 1,500 tons of green ammonia per day. The project anticipates a final investment decision in 2025 and plans to start commercial operations in 2028.
Before the next decision point in mid-2024, the project will actively work to secure a cost-effective concept for the plant and the entire value chain.
The crucial fundamentals of the next project phase will be securing long-term sales agreements and further reducing costs and risks to make the project competitive in the market established for green hydrogen and ammonia in Europe.
Narvik Green Ammonia will also look for opportunities for collaboration with possible off takers in Norway, for example within the maritime industry.
"Collaborating with Aker Horizons to develop a large-scale green ammonia project in Narvik fits well with our ambition to become a significant player in the market for green hydrogen and hydrogen-based energy products,” said Bjorn Holsen, SVP for Hydrogen in Statkraft. “Through the production of an industrial product such as green ammonia, we can contribute both to cutting emissions, driving the transition necessary and creating jobs locally,"
While the EU aims to produce 10 million tons and import 10 million tons of green hydrogen by 2030, Germany is introducing support schemes to increase the readiness of end-users to pay the premium for green hydrogen, which is currently more expensive as compared to hydrogen produced from fossil fuels.
"The Norwegian and German governments have established a joint Task Force to work on enabling the large-scale supply of hydrogen from Norway to Germany by 2030,” said Sverre Isak Bjorn, Asset Development Director, Aker Horizons. “The partnership established between Statkraft and Aker Horizons constitutes an important step forward in positioning Narvik Green Ammonia to contribute to this supply.”