Green ammonia production facility planned in Norway’s municipality of Sauda
The green ammonia will supply the shipping industry with a zero-carbon alternative marine fuel to traditional fossil fuels.
Hy2gen, an international company specialized in designing, building and operating facilities to produce green hydrogen and green hydrogen-based derivatives, plans to produce green ammonia as a fuel for the maritime sector, in the municipality of Sauda, on the southwestern coast of Norway.
The green ammonia production facility, named Iverson eFuels AS, will be owned by Hy2gen, Trafigura and Copenhagen Infrastructure Partners (CIP), a Danish fund management company focused on renewable energy infrastructure. The consortium plans to invest significant capital in the production, storage and shipping facility which will bring jobs to the local community.
Together with Norconsult, a pre-study was completed in 2021 and the project owners have now started the Front-End Engineering Design (FEED) phase, resulting in a full plan for the construction of the facility by 2023. Following a final investment decision, the commencement of construction is scheduled in the first quarter of 2024, and the facility will be fully operational at the beginning of 2027.
The Iverson project will have an initial electrolyzer capacity of 240 megawatts to produce 600 metric tons of green ammonia per day, with the aim to significantly scale up production in the future. The green ammonia will supply the shipping industry with a zero-carbon alternative marine fuel to traditional fossil fuels.
Gunnar A Gauthun, Hy2gen´s Hub Coordinator in Sauda, said:
“We will produce green ammonia through electrolysis technology, using clean electricity to provide green ammonia for vessels, and thereby contributing to minimize emissions for maritime transportation.”
Rasmus Bach Nielsen, Trafigura’s Global Head of Fuel Decarbonisation, stated:
“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 to drive demand and enable to radically reduce emissions.”
Cyril Dufau-Sansot, CEO of the Hy2gen Group, affirmed:
“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.”
When fully operational, the facility is expected to employ about 50 people and create a further 100 indirect jobs. The project team have already started the hiring process and will work together with local authorities to attract qualified personnel.
Asbjørn Birkeland, Mayor of Sauda, declared:
“We believe that this project is extremely interesting. In addition to jobs creation, significant investments will flow in over many years, by virtue of Iverson eFuels AS, Sauda would be put on the map of the energy transition. We wish Iverson eFuels AS all the best in the next steps and look forward to the inauguration of the production plant.”
Ammonia gas becomes liquefied at minus 33 degrees for storage and transportation. The highest safety regulations shall govern Iverson eFuels’ production, storage and delivery process in Sauda.
The project is supported by Agenda Vest and the UllaFørre fund.