Aker Horizons announced yesterday that it has signed a Letter of Intent with Statkraft and Yara International aiming to establish Europe’s first industrial-scale green ammonia project in Norway, enable the hydrogen economy, and accelerate the energy transition.
The first project in the partnership will be to electrify Yara’s existing ammonia facility in Porsgrunn, which has the potential to be one of the largest climate initiatives in Norwegian industrial history.
The partners will further target green hydrogen and green ammonia opportunities within shipping, agriculture and industrial applications.
The first project in the equal partnership is for electrification and decarbonization of Yara’s ammonia production at Herøya in Porsgrunn, one of the largest sources of onshore CO2 emissions in Norway.
The project has the potential to reduce CO2 emissions equivalent to the annual emissions from more than 300,000 fossil fuel passenger cars. Provided that power is available at the site and the required co-funding is secured, the project could be realized within 5-7 years.
Aker Horizons, Aker’s listed investment company within renewables and green technology, will carry out the project through its wholly owned subsidiary, Aker Clean Hydrogen, a new Aker Horizons’ company established to design, build, own and operate major hydrogen facilities globally
Like the rest of the Aker Horizons’ portfolio, Aker Clean Hydrogen will leverage the deep domain expertise across the Aker ecosystem, including within system integration, software and technology and project execution, to build and operate the project as efficiently as possible.
The conversion of Yara’s ammonia plant provides a unique opportunity to leverage Norway’s existing supplier industry and build new knowledge and competency for a global market. In addition to the Porsgrunn project, the three companies will explore the potential for green ammonia production in Northern Norway to leverage existing local competency and accelerate the transition for energy-intensive industries, including shipping and agriculture. ■