Aker Horizons and Statkraft team up on Narvik green ammonia project

Collaboration

October 16, 2023, by Aida Čučuk

Energy company Statkraft has joined counterpart Aker Horizons as a partner on the large-scale green hydrogen and ammonia project in Narvik, Norway.

The Narvik plant has a planned capacity of up to 600 MW and is said to be one of the first large-scale plants for green ammonia in Europe, with an expected production of 1,000 – 1,500 tons per day.

The project aims to reach the final investment decision (FID) in 2025 and plans to start commercial operations in 2028.

According to Aker Horizons, the project team from both companies will develop and mature the project together, with the aim of establishing a jointly owned company, Narvik Green Ammonia.

Noting that the company has already signed letters of intent (LoI) with several European energy, industrial and chemical companies, Aker Horizons said that Narvik Green Ammonia will also look for opportunities for collaboration with possible offtakers in Norway.

To remind, the project entered into a long-term power agreement with Statkraft some months ago.

“A partnership between Statkraft and Aker Horizons makes for a powerful combination. The companies complement each other well and share a common ambition to provide a significant contribution to the green transition and the development of green industry and jobs,” said Knut Nyborg, Head of Aker Horizons Asset Development.

Bjørn Holsen, SVP for Hydrogen in Statkraft, stated: “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.”

To note, demand for hydrogen and its derivatives, such as ammonia, is expected to grow significantly in the coming decade, notably as fuel for heavy-duty transport and shipping.

Aker Horizons emphasized the EU’s target to produce 10 million tons and import 10 million tons of green hydrogen by 2030, as well as Germany’s hydrogen support schemes.

“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,” remarked Sverre Isak Bjørn, Asset Development Director, Aker Horizons.