Yara takes sole ownership of green hydrogen, ammonia project in Norway

Yara takes sole ownership of green hydrogen, ammonia project in Norway

Company will build the project without the other two partners Aker Clean Hydrogen AS and Statkraft AS who decided to leave due to strategic reasons

  • By ICN Bureau | March 30, 2022
Yara International ASA will continue the realisaton of its decarbonisation project at the ammonia plant in Porsgrunn, Norway but not in a partnership with Aker Clean Hydrogen AS and Statkraft AS, as they have decided to leave the project.
The feasibility study demonstrates that the project is viable, however due to strategic considerations the parties have decided not to continue the current ownership structure. An integrated team consisting of members from the partners has worked together in the past year to mature the project in an early phase. 
Hegra was launched in 2021 as a cooperation between Yara, Aker Clean Hydrogen and Statkraft, aiming to decarbonize Yara’s ammonia plant at Herøya in Porsgrunn and removing 800 000 tonnes of annual CO2 emissions.
Yara will continue developing the project towards a final investment decision without Aker and Statkraft as shareholders. They cited “commercial and strategic reasons” for their decision, without elaborating. Further the parties will continue to work on promoting hydrogen production and relevant end markets in Norway and internationally, and the companies remain open to collaborate in relevant areas of the value chain in the future.
To remove one of Norway’s largest CO2 point emissions, Yara will continue to work towards a full electrification of Herøya, and offer green fertilizers and green ammonia to decarbonize the shipping sector through Yara’s global ammonia distribution network. The project is well positioned as it can utilize Yara’s existing infrastructure for ammonia production at Herøya, and it represents an important contribution to reach Norway’s climate targets towards 2030.
Yara hosted a groundbreaking ceremony for the pilot project at Herøya in March 2022. With support from ENOVA, this 24 MW electrolyzer pilot will give valuable technical and commercial learning. The pilot will involve suppliers and contractors from the Grenland region and contribute to local technology development and employment. The current geopolitical situation underlines the importance of having ammonia production in Norway.

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