The Holmaneset Project, Fortescue’s integrated renewable hydrogen and ammonia production plant in Norway, has been awarded an EU grant of over €200 million as part of its Innovation Fund. Powered by about 300 MW of hydro electricity, the project will produce over 40,000 tonnes of renewable hydrogen (about 225,000 of renewable ammonia) per year.
Located on the coast of the Nordgulen Fjord in western Norway, the Holmaneset Project will run on excess renewable energy from the Norwegian national grid. The produced renewable ammonia will be shipped to domestic and European markets. The project’s location has multiple advantages including existing infrastructure, surplus electricity, land and water availability.
In March 2023, Fortescue and renewable power supplier Statkraft signed a long-term Power Purchase Agreement in which Statkraft will supply renewable hydropower to the facility. An Early Investment Decision in the project was recently approved by Fortescue’s board, focusing on progressing it towards FEED before being considered for FID. Construction is expected to commence in 2025 and commercial operations in 2027.
The Holmaneset Project is a great opportunity for Fortescue, Norway and Europe to develop a significant green energy value chain, and its selection for funding by the EU is a recognition of its significance to global decarbonisation efforts.
Fortescue is leading the way to a future beyond fossil fuels, and we commend the EU for its leadership in joining with us to help kickstart a green ammonia industry in Norway and Europe.
Mark Hutchinson, Fortescue Energy CEO, in his organisation’s official press release, 15 December 2023
The Holmaneset Project is integral to creating a new green economy for Norway and Europe at scale. The green hydrogen and green ammonia produced near Svelgen has the potential to replace fossil fuels in industries that find it difficult to cut emissions, like long-haul transport, shipping and heavy industry.
This project will be important for Norway to achieve its ambitious targets to cut emissions and build sustainable industrial development, and those targets are crucial for overall emissions reductions across Europe.
Thor Magnus Rovik, Fortescue Norway Country Manager, in his organisation’s official press release, 15 December 2023
Southwest Norway is home to a number of other renewable ammonia production projects, all of them focused on the supply of maritime ammonia fuel. North Ammonia is developing a 100,000 tonnes per year project near Eydehavn village, with the fuel to supply Höegh’s future fleet of eight Aurora class, ammonia-powered car carriers. Hy2gen is leading development of the 200,000 tonnes per year Sauda project. And Fuella is leading development of the 100,000 tonnes per year Skipavika Green Ammonia project.