H2Carrier plans Power-to-X production of hydrogen and ammonia in Norway

Business Developments & Projects

April 23, 2024, by Aida Čučuk

Norwegian company H2Carrier has applied to the Norwegian Water Resources and Energy Directorate (NVE) for the development of two large onshore wind farms in Finnmark County to produce green hydrogen and ammonia.

Archive; Illustration; Courtesy of H2Carrier

The first wind farm, Oksefjorden, will be located at the Skjøtnigberg/Nordkyn peninsula in the municipalities of Lebesby and Gamvik, while the second wind farm, Rubbedalshøgda, will be based at the Varanger peninsula in the municipalities of Båtsfjord and Berlevåg. H2 Carrier said that the plans have been developed in cooperation with the host municipalities who already have been formally notified about the company’s intention to start the planning work.

The two wind farms have a planned installed capacity of 1,55 GW with an estimated annual production of 6356 GWh. The estimated annual production volume of green hydrogen and ammonia is 109,000 and 610,000 tons, respectively. In combination, the two projects will contribute to 3.9% of Norway’s targeted reduction of CO2 emissions until 2030, H2Carrier claimed.

The company also noted that it will use renewable power produced onshore for its floating production facilities installed on a ship which will be moored near shore, thus avoiding the environmental footprint normally associated with conventional onshore production of hydrogen/ammonia.

Renewable power will be refined locally in the host communities, and according to H2Carrier, will have a “significant” impact on local and regional value creation by way of employment opportunities, improved public revenues and will offer a range of opportunities to regionally based companies.

Mårten Lunde, CEO of H2Carrier, commented: “We are pleased to present plans for two large green energy projects in Finnmark which allows us to leverage technologies and processes developed from Norway’s offshore oil & gas activities. It is important to us that the projects have been developed and designed in a close co-operation with the host municipalities.”

“The limited grid capacity in Finnmark represents a bottle neck for development of new renewable power. By establishing new green industries on a floating production vessel adjacent to the wind farm, we are no longer dependent on an expansion of the national grid.”

To note, NVE asked companies to notify their plans for developing wind power by April 22, 2024, in line with a government initiative for raising energy and industry production in Finnmark, and as per H2Carrier, NVE will, in due course, identify a plan which includes hearings, impact assessments and so on, before any grant of a concession to build the wind farms.