Aker Horizons nets $12 million in funding for Rjukan green hydrogen project

Green energy developer Aker Horizons ASA has announced that Aker Horizons Asset Development, its wholly-owned asset development arm dedicated to hydrogen projects, has been awarded up to NOK 135 million ($12.2 million) in grants and loans from Innovation Norway for the green hydrogen production facility at Rjukan, in Eastern Norway.

Aker informed that Innovation Norway, the Norwegian Government’s instrument for supporting innovation and development of Norwegian enterprises and industry, is awarding up to NOK 85 million ($7.7 million) in grants and up to NOK 50 million ($4.5 million) in green growth loan to the Rjukan project, subject to certain terms and conditions.

The Rjukan project is expected to produce approximately 9 tonnes per day of green hydrogen from 20 MW electrolyser capacity, and according to Aker, existing infrastructure and industrial land and available hydropower at the site have been secured.

The company noted it recently completed a pre-FEED for civil works and the permitting process for the project is underway. Furthermore, it said that partnership discussions on the project are progressing well and Aker has secured a letter of intent (LoI) for a substantial amount of the offtake for Rjukan.

From Rjukan, Aker pointed out it will deliver compressed hydrogen to industry, shipping and mobility offtakers in Eastern Norway. A final investment decision (FID) is planned to be made by the end of 2023, with an estimated commercial operation date in 2025.

Knut Nyborg, CEO of Aker Horizons Asset Development, said: “We greatly appreciate the financial support from Innovation Norway for our hydrogen project at Rjukan, which will further derisk the project and enable us to accelerate the scaling up of hydrogen production. Rjukan is an important frontrunner in our portfolio and will serve as a blueprint for our larger projects, such as our large-scale green ammonia project in Narvik. Our goal is for green hydrogen to become a cost-competitive climate solution to reach net zero, both in Norway and globally.”

Håkon Haugli, CEO of Innovation Norway, commented: “The development of new technology for the production and commercialisation of green hydrogen plays an important role in Norway’s green energy transition. The Rjukan green hydrogen project is an early mover and an innovative project with great growth potential, which can contribute to increased mainland exports from Norway.”

Aker Horizons Asset Development Manager Ragnhild Stokholm added: “The Rjukan green hydrogen plant will entail several hundred million kroner in investments and create new green jobs. We are working closely with Tinn municipality, Rjukan Chamber of Commerce and local industrial actors, to explore opportunities for utilising the waste heat from the hydrogen production for other industrial processes, thereby supporting local circular economic development.”

To remind, in May this year, Aker signed a LoI with German gas group VNG to ship green ammonia from Narvik to Germany. VNG said it plans to procure up to 200,000 tonnes of green ammonia per year from Narvik as of 2028.

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