A collaboration between Aker Horizons and Statkraft will see the development of a large-scale green hydrogen and ammonia 600MW project in Narvik, Norway.
The plant, which is expected to produce between 1,000 and 1,500 tonnes of green ammonia per day, is anticipated to reach final investment decision (FID) in 2025, with commercial operations expected to commence in 2028.
The Narvik site is expected to support the EU’s goal of producing and importing 10 million tonnes of green hydrogen by 2030.
Both renewable energy companies signed an initial power purchase agreement (PPA) in July, and their work together on the project will see them establish a jointly owned company, Narvik Green Ammonia DA.
Now, the companies are navigating the phase of securing long-term sales agreements to reduce costs and risks, and make the project competitive in the European green hydrogen and ammonia market.
Letters of intent have already been signed between Aker Horizons and a number of ‘major’ European energy, industrial and chemical companies.
Moreover, Narvik Green Ammonia will turn to the maritime sector to collaborate with off takers in Norway.
Bjørn Holsen, Senior Vice President for Hydrogen at Statkraft, said: “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.
“Statkraft wants to build new green industry based on renewable energy. 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.”
Sverre Isak Bjørn, Asset Development Director at Aker Horizons, added: “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.
“The partnership established between Statkraft and Aker Horizons constitutes an important step forward in positioning Narvik Green Ammonia to contribute to this supply.”