Aker Horizons, Statkraft Partner for European Green Hydrogen, Ammonia Project

Aker Horizons and Statkraft have announced a joint agreement to develop a large-scale green hydrogen and ammonia production project in Narvik, Norway. The plant, currently under construction at Kvandal in Narvik, will have a capacity of up to 600 MW and produce 1,000-1,500 tons of green ammonia per day. A final investment decision is planned for 2025 and commercial operations are slated to begin in 2028.

"Collaborating with Aker Horizons to develop a large-scale green ammonia project in Narvik fits well with our ambition to become involved in the market for green hydrogen and hydrogen-based energy products,” said Bjørn Holsen, SVP for Hydrogen in Statkraft. “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 to cutting emissions, driving the transition necessary, and creating jobs locally."

The companies have agreed to develop and advance the project together, with plans to form a jointly owned entity called Narvik Green Ammonia DA. Narvik Green Ammonia will identify offtake opportunities for customers in Norway, such as ammonia and hydrogen transportation in the maritime industry. Prior to this joint operation, Statkraft had been signed to a long-term power agreement at the Narvik project and will continue to seek low-cost plant and value-chain concepts before next year’s decision point.

Accruing long-term sales agreements, reducing costs, and conducting risk management are necessary requirements for establishing additional phases in the project’s future. The Kvandal production site is being developed with the intention to integrate additional green industry projects at a later date.

"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,” said Sverre Isak Bjørn, Asset Development Director, Aker Horizons.“The partnership established between Statkraft and Aker Horizons constitutes an important step forward in positioning Narvik Green Ammonia to contribute to this supply."