Five hydrogen production projects received support from Enova last week. This initiative is intended to serve as a springboard for hydrogen as a fuel in Norwegian shipping, marking an important step toward establishing Norway's first functional hydrogen value chain. We extend our congratulations to our members on this achievement!

An overview of the five projects that received funding. Image: Enova

The goal of Enova’s support is to make hydrogen a more accessible and economically sustainable fuel in the long term.

— 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.

Among the supported projects is HYDS – Hydrogen Solutions, which has been awarded a total of NOK 386 million for the HyFuel project in Florø and the Kaupanes Expansion Project in Egersund.

— I am incredibly proud of the team that has worked together on these applications, and we are ready for an expansion of Kaupane's Hydrogen and a realization of the HyFuel production facility. The good cooperation between the owners in both projects will now be continued, led by HYDS, through the planning, construction and operation phase, says Thor Henrik W. Hagen, CEO of HYDS.

When reflecting on the value of the grant, Hagen comments — This is very positive for the development of the industry, the maritime sector and for us as a company. What Enova is doing now is fantastic, providing support for both the production and the use of hydrogen. For us, it means a lot to be able to upscale our existing production at Kaupanes Hydrogen and establish the production at the important hub HyFuel in Florø. Further on, we see that the market is growing, with many stakeholders , and the grant contributes to being able to connect with the customers.

From left: Martin Hennum - Ocean Hyway Cluster, Idar Sønstebø - Dalane Energi, Frode Kirkedam - HYDS, Lone Frogner - Chairperson of the board HYDS, Sigmund Størset - Enova, Thor Henrik Hagen - HYDS, Øyvind Leistad - Enova and Jan Erik Ødegård - HYDS

Hagen adds that this also means a lot for the project’s owners and emphasizes the value of cooperation: — We are developing the HyFuel facility together with Fjord Base and Sogn og Fjordane Energi, while Kaupanes Expansion Project in Egersund includes Dalane Energi and Eigersund Næring og Havn KF.

Owners’ proud of the progress

Ole Scanke Eikum and the team behind HyFuel are very pleased with the support.

— HYDS joined as co-owner of HyFuel in spring 2024, and it is very satisfying to see that the project has been further developed and strengthened under new ownership to once again receive support from Enova for establishing hydrogen production at Fjord Base. Enova has now focused on synchronizing support both for production and hydrogen end users evt off take, which is crucial to realizing the hydrogen value chain.

Fjord Base initiated the HyFuel project because access to hydrogen as fuel can create positive ripple effects for maritime activities in Florø, reduce greenhouse gas emissions, and create local jobs.

— We will contribute to the success of the HyFuel project with what we do best: development and operation of ports, technical infrastructure, and industrial areas, concludes Eikum.

CEO of Nyvinn (SFE), Roger Flølo, says that this could bring significant local ripple effects and job opportunities in Florø.

— The allocation resolves a significant uncertainty in the project, enabling further detailed planning of the facility. The construction phase will span several years, creating numerous jobs both during the build and in the ongoing operation of the plant. Hydrogen production will also yield by-products such as oxygen and heat, which other businesses in the area can utilize, allowing a hydrogen facility to contribute to value creation in other industries as well, says Flølo.

It has been a rewarding collaboration so far, with a proactive group of project partners and a joint focus on the sustainable and holistic solutions:

— As part of the project partners' sustainability strategies, HyFuel will develop and contribute to local industrial symbiosis and circular economy. This is done, among other things, by offering by-products from hydrogen production, oxygen and heat, to Havlandet's plant on the neighbouring site, says Project Manager at HyFuel, Odd Peter Ørjasæter (HYDS).
Furthermore, it is crucial that the project is supported by solid owners, has a central location, and has reserved power. This makes the HyFuel project in Florø an important maritime hub and now also a part of Norway's hydrogen strategy, he states.

A new value chain emerging

Kristin Svardal, CEO of Ocean Hyway Cluster, eagerly followed Enova’s announcement and is pleased to see a new value chain take shape.

— Last week's grant from Enova is an important milestone for the use of green hydrogen in shipping! This allocation, together with Enova’s vessel support earlier this year, will hopefully be enough to kickstart the market. The maritime sector accounts for one billion tons of CO₂ emissions annually on a global scale. As a maritime nation, it is essential for us to establish functioning hydrogen and ammonia value chains at strategic locations along the Norwegian coast, at prices that make the energy transition possible, she states.

Enova's efforts over the past year have provided support for both hydrogen and ammonia for vessels, and now also for hydrogen production for maritime transport.

By-products from these facilities can also help strengthen existing industries and contribute to the development of new industries in the regions. Such projects have many ripple effects, in addition to cut emissions. This is something the cluster is working closely with the industry to explore.

A step toward sustainable shipping

Karoline J Vågsholm

A step toward sustainable shipping

Karoline J Vågsholm

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