Norway Yara partners with Aker, Statkraft to launch green ammonia firm

LONDON (ICIS)–Yara has launched an initiative to decarbonise and electrify ammonia production at its site in Heroya, Norway, the fertilizer major announced on Monday.

Together with engineering firm Aker Clean Hydrogen and hydropower company Statkraft, the three have formed  HEGRA (Heroya GReen Ammonia) with the aim of creating a new industry in Norway and giving it a competitive advantage in the growing global hydrogen economy.

HEGRA estimates that its decarbonisation project will will reduce CO2 emissions by 800,000 tonnes/year, the equivalent to 300,000 fossil-fuelled cars.

Green ammonia is the term given to ammonia produced without creating CO2 emissions by using renewable energy. HEGRA says its process will enable the production of carbon-free fertilizer and a zero-emission fuel for the maritime sector.

Yara, Aker and Statkraft each own one-third of HEGRA and former Statnett CEO Auke Lont has been appointed chairman.

HEGRA is expected to come online in the next five to seven years, but this will depend on public co-funding and whether sufficient power is available at the site.

The project was launched with the EU Commission’s Fit for 55 package in mind, which aims for a 55% reduction in emissions by 2030.

As the cost of emissions from industrial activity is set to rise on the back of new regulations and customer demand, it has been necessary for Norway to find more sustainable alternatives.

The Norwegian maritime industry is aiming to reduce emissions by half by 2030, and access to emission-free fuel such as green ammonia will be key to achieving this goal.

This venture is also expected to create jobs in the supply chain and maritime industry and could create a new export market for the country.

“With renewable energy in abundance, Norway is in a good position to capture a large share of the emerging global green hydrogen and ammonia value chain,” Yara said in a statement.

The Confederation of Norwegian Enterprise estimates that the turnover of a national hydrogen industry could reach Norwegian krone (NKr)10bn by 2030, and rise to NKr70bn in 2050 on the strength of the export market.

€1:NKr10.42