Green Ammonia from HEGRA to secure Norwegian competitiveness
Today the company HEGRA is launched at Herøya, Porsgrunn, with former Statnett CEO, Auke Lont as Chairman. The company aims to electrify and decarbonize the ammonia plant at Herøya, enabling large-scale green ammonia production. «HEGRA» is short for HErøya GReen Ammonia, and is co-owned by Yara, and cluster members Aker Clean Hydrogen and Statkraft each owning 1/3.
CEOs Christian Rynning-Tønnesen, Statkraft, Svein Tore Holsether, Yara and Øyvind Eriksen, Aker. Foto: Ole Walter
Aker, Yara and Statkraft have established HEGRA with the ambition of creating new industry in Norway that provides a competitive advantage in a growing global hydrogen economy, establishes green jobs for the future and forms the basis for a future Norwegian export industry, says CEOs Svein Tore Holsether, Øyvind Eriksen and Christian Rynning-Tønnesen in Yara, Aker and Statkraft, respectively, in a joint statement.
Green ammonia, produced using renewable energy, would enable the production of carbon-free fertilizer and is 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.
The maritime and processing industries in Norway are important export industries and comprises more than 100,000 jobs. HEGRA will contribute to securing and creating jobs in new supply chains and through 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 site and the required public co-funding is in place, the project could be realized already 5-7 years from now.
The Norwegian maritime industry is set to cut their 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 in 2030 and NOK 70 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, says Lont.
For further information, contact:
Yara: Josiane Kremer: Josiane.kremer@yara.com
Aker Horizons: Ivar Simensen: ivar.simensen@akerhorizons.com
Statkraft: Geir Fuglseth: geir.fuglseth@statkraft.com
