Aker Horizons has signed a 10-year power purchase agreement (PPA) with Statkraft, a European renewable energy supplier. This PPA ensures a large percentage of the renewable energy required for Aker Horizons’ green ammonia factory, which is now under construction in Narvik, northern Norway. The PPA with Statkraft will cover the first ten years of the Narvik plant’s planned operations, beginning in 2028. With a planned daily production of between 1,000 and 1,500 metric tonnes, the facility is expected to be one of Europe’s first large-scale green ammonia manufacturing plants, with a capacity of up to 600 MW.
Aker Horizons aims to develop green value chains by integrating renewable energy with midstream products like hydrogen and downstream end-use products like green ammonia in Narvik. Reportedly, the company has already signed offtake letters of intent with major European energy, industrial, and chemical companies for volumes of ammonia that exceed the planned production in Narvik. The execution of the PPA is dependent on Aker Horizons making a final investment decision for the Narvik green ammonia project.
In April 2023, Aker Clean Hydrogen partnered with Statkraft and SOWITEC to explore opportunities to create green hydrogen and ammonia in India and Brazil. The steel and fertiliser industries in India and Brazil would be the focus of the collaboration. Green hydrogen would be used to replace grey, fossil-fuel-based hydrogen, coal, and natural gas as a fuel and feedstock in the collaboration.
REGlobal’s Views: Green ammonia and green hydrogen are emerging as important fuel sources especially for large energy intensive industries that are focusing on reducing their carbon emissions. Thus, there is a massive surge in such projects across the globe.
