🇳🇴 Over NOK 777 million for hydrogen – securing supply along the Norwegian coast

Five projects for hydrogen production receive support from Enova. This initiative is intended to be a springboard for the use of hydrogen in Norwegian shipping.

press release Enova

“The Norwegian maritime sector is taking the lead, once again,” says Minister of Climate and Environment Tore O. Sandvik (Ap). “These projects can reduce emissions in Norway, but will also contribute to the transition in the rest of Europe and the world.”

“Congratulations to the projects that received support today. It’s fantastic to see so many players investing in innovative and emission-free solutions. Norway has a long tradition as a leading maritime nation,” says Minister of Energy Terje Aasland (Ap). “What we’re doing to develop emission-free solutions for maritime transport here at home could have an impact far beyond our borders.”

Hydrogen for Norwegian Ships

The goal of Enova’s support is to establish Norway’s first functional hydrogen value chain, serving as a springboard for further development. This aims to make hydrogen a more accessible and sustainable fuel in the long term, including economically.

“The projects receiving support will become part of a network of hydrogen producers along the Norwegian coastline, from Slagentangen in the southeast to Bodø in the north,” says Nils Kristian Nakstad, CEO of Enova.

“This will make hydrogen more accessible for those who want to invest in sustainable shipping,” he says.

These projects are receiving support: 

• Hydrogen plant in Slagentangen, Vestfold: GreenH in collaboration with Grieg Edge and Esso Norway.

  Support amount: 144.11 million NOK.

• Hydrogen plant in Egersund, Rogaland: Kaupanes Hydrogen, owned by Hydrogen Solutions, Dalane Energi, and Eigersund Næring og Havn.

  Support amount: 206 million NOK.

• Hydrogen plant in Florø, Vestland: HyFuel, owned by Hydrogen Solutions, Fjord Base, and Sogn og Fjordane Energi.

  Support amount: 180 million NOK.

• Hydrogen plant in Kristiansund, Møre og Romsdal: GreenH.

  Support amount: 118.66 million NOK.

• Hydrogen plant in Bodø, Nordland: GreenH.

  Support amount: 128.65 million NOK.

“These are pioneers leading the way for hydrogen and securing supply along the Norwegian coast,” says Nakstad, adding:

“This will lay the foundation for hydrogen to develop into a fuel that many can adopt.”

5.5 Percent of National Emissions

The projects will provide a total production capacity of 120 MW, which is equivalent to approximately 40 tons of hydrogen per day. Together, the projects that have received support under Enova’s initiative, both now and in 2022, will contribute to a reduction of 200,000 tons of CO2 per year. This corresponds to 5.5 percent of the national emissions from shipping and fishing, which amount to 3.66 million tons of CO2 per year, according to SSB figures from 2022.

“If we succeed with these initial projects and emissions reductions, we will have paved the way for significant emission cuts in the future,” says Sigmund Størset, hydrogen target manager at Enova.

The emissions reduction depends on investing in a corresponding number of vessels to utilize the hydrogen.

Investment in Hydrogen and Ammonia

In December 2023, Enova announced a significant strengthening of its focus on hydrogen and ammonia as fuels in the maritime sector. This will involve new support programs for both hydrogen production and infrastructure, as well as infrastructure for ammonia and support for hydrogen and ammonia vessels.

The overall goal of this initiative is to realize the first functioning value chains for both hydrogen and ammonia as fuels in Norway.

Infrastructure for Ammonia

Enova has announced that a corresponding program for support for ammonia bunkering facilities for shipping along the coast will be launched.

“This support program will be an important part of the initiative, and we are currently working on it,” says Størset. “We plan to release preliminary program criteria for market input during the first quarter of 2025, with the final program launch expected in the second quarter.”

Facts about “Hydrogen Production for Maritime Transport 2027”:

• Support for the production of hydrogen from renewable energy sources, intended as fuel for the maritime sector.

• The name indicates that the facilities are expected to deliver hydrogen to the market starting in 2027.

• There will be a competition for support, with Norway divided into three competition areas based on electricity pricing regions: Southern Norway (NO1, NO2, N5), Central Norway (NO3), and Northern Norway (NO4).

• Support of up to 80 percent of total investment costs and a maximum of 500 million NOK per project in the Southern Norway competition area, and up to 320 million NOK per project in the Central and Northern Norway areas.