The three Norwegian companies Yara, Aker Clean Hydrogen and Statkraft have launched a new joint venture called HEGRA which aims to electrify and decarbonise the ammonia production facility at Herøya, producing 800,000 tonnes annually within seven years.
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"Aker, Yara and Statkraft have established HEGRA with the ambition of creating new industry in Norway that provides a competitive advantage in a growing global hydrogen economy, establishes green jobs for the future and forms the basis for a future Norwegian export industry," says CEOs Svein Tore Holsether, Øyvind Eriksen and Christian Rynning-Tønnesen in Yara, Aker and Statkraft, respectively, in a joint statement.
Green ammonia, produced using renewable energy, would enable the production of carbon-free fertilizer, and is a promising zero-emission fuel for the maritime sector.
HEGRA will contribute to creating a new industry based on a regional hydrogen and ammonia market, whilst ensuring the survival and competitiveness of the Norwegian maritime and processing industries.
The maritime and processing industries in Norway are important export industries and comprises more than 100,000 jobs. HEGRA will contribute to securing and creating jobs in new supply chains and through ripple effects that these industries create.
"HEGRA is geared specifically at meeting the ambition of the European Commission’s «Fit for 55» package, which aims to reduce EU emissions by 55 per cent by 2030.
HEGRA will give Norway a competitive advantage within renewable energy and hydrogen and put Norway in a great position to reach climate ambitions," says Auke Lont, Chair of HEGRA’s Board..
The Norwegian maritime industry is set to cut their emissions in half by 2030. Access to emission-free fuel will be key to reach this goal. The existing global infrastructure for ammonia will facilitate Norwegian green ammonia to become a global commodity immediately.
With renewable energy in abundance, Norway is in a good position to capture a large share of the emerging global green hydrogen and ammonia value chain.
A report published in 2020 by The Confederation of Norwegian Enterprise found that the hydrogen industry can become a significant Norwegian export industry, with an estimated turnover of NOK 10 billion in 2030 and NOK 70 billion in 2050. ■