In Norway, fertilizer major Yara International ASA, Aker Clean Hydrogen part of Aker ASA, and power major Statkraft ASA have formed HErøya GReen Ammonia (HEGRA), an equally co-owned company that aims to electrify and decarbonize Yara's ammonia plant at Herøya, Porsgrunn, enabling large-scale green ammonia production.
Green ammonia, produced using renewable energy, would enable the production of carbon-free fertilizer and is seen as a promising zero-emission fuel for the maritime sector. HEGRA will contribute to creating a new industry based on a regional hydrogen and ammonia market, whilst ensuring the survival and competitiveness of the Norwegian maritime and processing industries.
Former Statnett CEO, Auke Lont has been selected as Chairman.
HEGRA is more than a new industrial company, it is Norway’s largest climate initiative. The decarbonization project will reduce CO2 emissions by 800 000 tonnes annually, equivalent to 300 000 fossil-fueled cars. It marks the beginning of developing a Norwegian value chain for green ammonia and hydrogen, says Auke Lont, Chair of HEGRA’s Board.
New export industry based on renewable power
The maritime and processing industries in Norway are important export industries and provides over 100 000 jobs. HEGRA will contribute to securing and creating jobs in new supply chains and through the ripple effects that these industries create.
The costs of emissions in the processing industry are expected to increase in the international market as a result of regulations and customer demands. To achieve the necessary emission reductions, the Norwegian industry and maritime sector need access to clean hydrogen and ammonia.
HEGRA brings together Norway’s foremost experts in ammonia, project development, and energy markets. Provided that power is available at the site and the required public co-funding is in place, the project could be realized already 5-7 years from now.
HEGRA is geared specifically at meeting the ambition of the European Commission’s “Fit for 55″ package, which aims to reduce EU emissions by 55 percent by 2030. HEGRA will give Norway a competitive advantage within renewable energy and hydrogen and put Norway in a great position to reach climate ambitions, Auke Lont said.
The Norwegian maritime industry is set to cut its emissions in half by 2030. Access to emission-free fuel will be key to reach this goal. The existing global infrastructure for ammonia will facilitate Norwegian green ammonia to become a global commodity immediately. With renewable energy in abundance, Norway is in a good position to capture a large share of the emerging global green hydrogen and ammonia value chain.
A report published in 2020 by the Confederation of Norwegian Enterprise found that the hydrogen industry can become a significant Norwegian export industry, with an estimated turnover of NOK 10 billion (≈ EUR 961.4 million) in 2030 and NOK 70 billion (≈ EUR 6.73 billion) in 2050.
The timing of HEGRA is important because it will be key to establish a well-functioning domestic and regional market before the global demand for ammonia increases. We look forward to engaging with authorities and the industry on how to realize one of the first large-scale industrial projects within green hydrogen and ammonia in Norway, said Auke Lont.
