Aker Horizons and Statkraft have agreed to collaborate on a large-scale green hydrogen and ammonia 600MW project in Narvik, Norway.
The plant is expected to produce 1,000 – 1,500 tonnes of green ammonia per day, with aims to reach final investment decision (FID) in 2025 and plans to begin commercial operations in 2028.
The two companies first signed a power purchase agreement (PPA) in July (2023), and have now agreed to develop and mature the project together with the aim of establishing a jointly owned company, Narvik Green Ammonia DA.
Aker Horizons has signed letters of intent with several ‘major’ European energy, industrial and chemical companies, whilst Narvik Green Ammonia will look for opportunities to collaborate with off takers in Norway, and in particular the maritime sector.
Securing long-term sales agreements, and further reducing costs and risks in the project will be important requirements in the next project phase and make it competitive in the European green hydrogen and ammonia market.
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.”
The green hydrogen and ammonia site in Narvik is anticipated to support the EU’s goal of producing and importing 10 million tonnes of green hydrogen by 2030.
Sverre Isak Bjørn, Asset Development Director, at Aker Horizons, said, “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.”