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Norway, enable the hydrogen economy, and accelerate the energy transition. The
first project in the partnership will be to electrify Yara’s existing ammonia
facility in Porsgrunn, which has the potential to be one of the largest climate
initiatives in Norwegian industrial history. The partners will further target
green hydrogen and green ammonia opportunities within shipping, agriculture and
industrial applications.
“Aker has been a driving force for knowledge-based industrial development for
180 years. A partnership with Yara and Statkraft, two fellow Norwegian
industrial pioneers, marks the beginning of a new industrial adventure in
Norway. The first project in Porsgrunn can be a lighthouse project - providing
competitive advantage in a growing global hydrogen economy, building on existing
capabilities in the Norwegian supplier industry to create new jobs for the
future, and forming the basis for a future Norwegian export industry,” says
Øyvind Eriksen, President & CEO of Aker ASA and Chairman of Aker Horizons.
The first project in the equal partnership is for electrification and
decarbonization of Yara’s ammonia production at Herøya in Porsgrunn, one of the
largest sources of onshore CO2 emissions in Norway. The project has the
potential to reduce CO2 emissions equivalent to the annual emissions from more
than 300,000 fossil fuel passenger cars. Provided that power is available at the
site and the required co-funding is secured, the project could be realized
within 5-7 years.
“This is not just a unique decarbonization project, but a strategic investment
that can establish new value chains for green hydrogen and green ammonia. Yara
is a world leader in ammonia, with long experience and leading position within
global ammonia production, logistics and trade. With Statkraft and Aker Horizons
onboard we gain key expertise within renewable electricity, power markets,
industrial development and project execution, giving us a unique opportunity to
realize the project,” says Svein Tore Holsether, President and CEO of Yara.
Aker Horizons, Aker’s listed investment company within renewables and green
technology, will carry out the project through its wholly owned subsidiary, Aker
Clean Hydrogen, a new Aker Horizons’ company established to design, build, own
and operate major hydrogen facilities globally. Like the rest of the Aker
Horizons’ portfolio, Aker Clean Hydrogen will leverage the deep domain expertise
across the Aker ecosystem, including within system integration, software and
technology and project execution, to build and operate the project as
efficiently as possible.
The conversion of Yara’s ammonia plant provides a unique opportunity to leverage
Norway’s existing supplier industry and build new knowledge and competency for a
global market. In addition to the Porsgrunn project, the three companies will
explore the potential for green ammonia production in Northern Norway to
leverage existing local competency and accelerate the transition for energy
-intensive industries, including shipping and agriculture.
"Statkraft is Europe’s largest producer of renewable energy. Norway’s rich
renewable energy resources are one of our most important competitive advantages.
This project paves the way for new industrial development, and can at the same
time give Norway’s important maritime sector a new competitive advantage, namely
access to an efficient and emission-free energy source on a large scale, " says
Statkraft CEO Christian Rynning-Tønnesen.
Shipping currently accounts for 2 percent of global GHG emissions, of which long
-distance shipping represents 80 percent. Converting all long-distance shipping
to ammonia would require approximately 500-600 tons of ammonia annually, 3-4
times current world production levels. The Norwegian shipping industry has a
stated ambition to reduce emissions from domestic shipping by 50 percent by
2030, which will require significant green hydrogen production.
“It is currently more expensive to produce green hydrogen based on renewable
electricity and electrolysis than through natural gas, but large-scale
production will reduce cost of the electrolysis route. For hydrogen to be
exported or used in long-haul shipping or fertilizer production, it needs to be
converted to ammonia, and converting Yara’s existing ammonia plant is both
faster and more cost-effective than building a new plant. However, realizing
this innovative project will require good incentive frameworks and support from
the authorities,” says Holsether.
Yara’s Porsgrunn plant is well set up for large-scale production and export,
allowing Norway to quickly play a role in the hydrogen economy. Constructing a
new ammonia plant and associated infrastructure is typically a capital-intensive
process, but by utilizing Yara’s existing ammonia plant and associated
infrastructure in Porsgrunn, valued at USD 450 million, the total capital
requirement for the project is significantly reduced compared with alternative
greenfield locations.
“The Norwegian process industry and cornerstone companies in local communities
are dependent on restructurings to secure and create new jobs. The Herøya
project will be a starting point for further electrification of Norwegian
industry and realization of hydrogen as an energy carrier. This forms the basis
for a new export industry built on unique competency and expertise already in
high demand in Europe and other global markets,” says Eriksen. “Not unlike the
impact Ekofisk and other fields had on the development of the Norwegian oil and
gas industry in the 1970s and 80s, the hydrogen project at Herøya could have
major ripple effects for the development of the entire hydrogen value chain and
supplier industry in Norway.”
Ammonia’s chemical properties make it ideally suited for the hydrogen economy.
It does not need to be refrigerated to the same temperatures as hydrogen, and
has a higher energy density than liquid hydrogen, making it more efficient to
transport and store. Ammonia is therefore the most promising hydrogen carrier
and zero-carbon shipping fuel.
Yara, Statkraft and Aker will host a press conference today, Thursday, February
18, at 10:00 CET. The press conference will be held in Norwegian and can be
followed live at https://www.yara.com/news-and-media/green-ammonia-project-press
-conference/
Aker Horizons will host a presentation about Aker Clean Hydrogen and its
ambitions in the global hydrogen market on Friday, February 19 at 11:00 CET.
-ENDS-
For more information, please contact:
Atle Kigen, Head of Corporate Communications, Aker ASA
Tel: +47 90784878
Email: atle.kigen@akerasa.com
Christina Chappell Glenn, Head of Investor Relations, Aker ASA
Tel: +47 90532774
Email: christina.glenn@akerasa.com
This information is subject of the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.
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