Norwegian green ammonia project secures 15-year power purchase deal

SkiGA, a project managed by ammonia development company Fuella, and power producer Hafslund have entered into a 15-year power purchase agreement (PPA) to produce green ammonia in Skipavika, Gulen municipality, Norway.

According to Hafslund, the agreement covers the delivery of up to 130 MW of renewable, emission-free power documented with Guarantees of Origin that will provide up to 100,000 tons of green ammonia per year and an annual base load volume of up to 1.1 TWh.

Kristin Lian, CEO of Hafslund Eco Vannkraft, stated: “A central part of Hafslund’s strategy is to be a partner and supporter of green industrial development. Green ammonia is a central solution in the transition to a decarbonized and emission-free society. This contract is an important contribution to this, and can also provide for new industrial consumption in a price area where Hafslund has a lot of renewable power production.”

Cornel Russi, CEO of SkiGA, noted: “Green ammonia is a prerequisite for the green transition and reduction in greenhouse gas emissions. The agreement with Hafslund gives the project access to renewable power at competitive prices providing crucial predictability for the production of green ammonia and the creation of new jobs in Skipavika.”

To note, SkiGA is planned to start operation in 2027, and the power supply is conditional on the final investment decision (FID) for the ammonia project.

In 2023, German energy supply company EnBW entered into an investment agreement with SkiGA, under which EnBW acquired a 10% equity stake in the project and secured exclusive offtake rights for green ammonia.

Peter Heydecker, Executive Director Trading of EnBW, said at the time: “We in EnBW want to be a long-term partner for Norway’s ambitions to develop the future energy mix, both offshore wind, green hydrogen and ammonia. I believe this project will have substantial effects on local, national and international scales. We are very excited to be part of this project.”