Hy2gen to produce ammonia as marine fuel in Norway

Hy2gen to produce ammonia as marine fuel in Norway

Germany-based green H2 production company Hy2gen and Swiss commodity trader Trafigura plan to produce green ammonia as a fuel for the maritime sector in the southwestern coast of Norway.

Courtesy of Trafigura
Hy2gen to produce ammonia as marine fuel in Norway
Courtesy of Trafigura

Iverson eFuels green ammonia production facility will be owned by Hy2gen, Trafigura, and Copenhagen Infrastructure Partners (CIP). The consortium plans to invest significant capital in the production, storage, and shipping facility.

The facility is specifically located in the municipality of Sauda, on the southwestern coast of Norway.

Together with Norconsult, a pre-study was completed in 2021. The project owners have now started the FEED phase. This resulted in a full plan for the construction of the facility by 2023.

Following a final investment decision, the start of construction will take place in the first quarter of 2024. The facility will be fully operational at the beginning of 2027.

The project will have an initial electrolyzer capacity of 240 MW to produce 600 metric tonnes of ammonia per day. However, the aim is to significantly scale up production in the future.

Green ammonia will supply the shipping industry with a zero-carbon alternative marine fuel to traditional fossil fuels.

“Availability of zero-emission alternative fuels such as green ammonia is an important pre-requisite to decarbonising the global shipping industry.  We also urgently need global policy-makers to cost neutralise the use of zero-carbon fuels through carbon pricing measures,” said Rasmus Bach Nielsen fromTrafigura.

“When we started looking for a location for our green ammonia plant in Norway, Sauda emerged as the epitome. The accessibility to abundant green energy from hydropower, a good harbour for exports, an attractive production site, a long regional industry history, and above all, the positive reception of the local authorities and businesses, encouraged us to choose Sauda as the future home of Iverson eFuels AS in Norway,” said Cyril Dufau-Sansot, CEO of the Hy2gen.

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Agenda Vest and the UllaFørre fund support the project.