EnBW acquires stake in planned Norwegian ammonia plant

LONDON (ICIS)–German utility EnBW announced on 29 August it has acquired a 10% equity stake and offtake right for a renewable ammonia production plant developed by Norwegian company Skipavika Green Ammonia (SkiGA).

The production facility is set to completed in 2026, to be powered by renewable electricity and with a planned production capacity of 100,000 tonnes/year.

Norway plans to develop 30GW of offshore wind by 2040 and according to SkiGA, the ammonia plant will function as a battery when the offshore wind expansion delivers surplus supply.

If the project goes ahead as planned, it will likely be Europe’s first emission-free ammonia production facility.

According to EnBW, the project has secured grid connection and is in talks for power purchase agreements (PPAs).

Ammonia is a compound which contains nitrogen and hydrogen and can be converted to hydrogen for energy storage and electricity generation. It has a higher volumetric energy density than hydrogen and is easier to store and transport.

In June, Norwegian Hydrogen announced a similar project for a renewable hydrogen plant with a capacity of 40,000 tonnes annually to be completed by the end of 2027. The hydrogen from this project is planned to be shipped using Australian partner Provaris Energy’s solution for compressed hydrogen.

At the time of publication, SkiGA did not respond to ICIS about how it plans to transport ammonia from Norway to Germany, but it will most likely also use a shipping solution.

However, a hydrogen pipeline between Norway and Germany is also in the cards. In January, German utility RWE and Norwegian state-owned energy company Equinor announced plans to build a hydrogen pipeline between the two countries by 2030.

Norwegian operator Gassco is due to publish a feasibility study for this pipeline by the end of the summer.

According to Germany’s national hydrogen strategy, imports will play a key role in its hydrogen economy, to account for 50-70% of the country’s supply.

To this end, Norway is positioning itself as a key hydrogen supplier for Germany.