In a significant step towards advancing renewable energy solutions, Statkraft, Europe’s foremost producer of renewable energy, has joined forces with Aker Horizons as a partner in the ambitious green hydrogen and ammonia project set to unfold in Narvik, Norway.
The upcoming plant, to be situated at Kvandal in Narvik, is projected to boast an impressive planned capacity of up to 600 MW. Moreover, it is anticipated to become one of Europe’s inaugural large-scale green ammonia production facilities, aiming for an estimated output ranging between 1,000 to 1,500 tonnes per day. The venture envisions finalizing investment decisions by 2025 and commencing commercial operations by 2028.
Collaborating closely, the combined project team from Statkraft and Aker Horizons is determined to meticulously develop and mature the initiative. The end goal involves establishing a jointly owned entity, Narvik Green Ammonia DA. Aker Horizons has already inked letters of intent with significant European players in the energy, industrial, and chemical sectors.
Narvik Green Ammonia intends to explore collaborative opportunities with potential offtakers within Norway, especially within the maritime industry. Previously, the project secured a long-term power agreement with Statkraft, further solidifying its foundation. The team will actively strive to optimize the plant’s concept and the entire value chain, aiming for cost-effectiveness in preparation for the critical decision point in the middle of the upcoming year.
On a broader scale, the European Union has set an ambitious target of producing 10 million tonnes and importing an additional 10 million tonnes of green hydrogen by 2030. Germany, aligning with this vision, is implementing support schemes to bolster end-users’ willingness to pay a premium for green hydrogen, recognizing its current cost differential compared to hydrogen derived from fossil fuels.
Sverre Isak Bjorn, Asset Development Director at Aker Horizons, highlighted that 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, underscoring the collaborative efforts at an international level to embrace sustainable energy solutions.