Green ammonia production facility planned in Norway’s municipality of Sauda – FEED study underway
Norway, 3 February 2022 – Hy2gen, an international company specialized in designing, building and operating facilities to produce green hydrogen and green hydrogen-based derivatives, plans to produce green ammonia as a fuel for the maritime sector, in the municipality of Sauda, on the southwestern coast of Norway.
The green ammonia production facility, named Iverson eFuels AS, will be owned by Hy2gen, Trafigura, one of the world’s leading independent commodity trading companies and Copenhagen Infrastructure Partners (CIP), a Danish fund management company focused on renewable energy infrastructure. The consortium plans to invest significant capital in the production, storage and shipping facility which will bring jobs to the local community.
Together with Norconsult, a pre-study was completed in 2021 and the project owners have now started the Front-End Engineering Design (FEED) phase, resulting in a full plan for the construction of the facility by 2023. Following a final investment decision, the commencement of construction is scheduled in the first quarter of 2024, and the facility will be fully operational at the beginning of 2027.
The Iverson project will have an initial electrolyzer capacity of 240 megawatts to produce 600 metric tons of green ammonia per day, with the aim to significantly scale up production in the future. The green ammonia will supply the shipping industry with a zero-carbon alternative marine fuel to traditional fossil fuels.
“We will produce green ammonia through electrolysis technology, using clean electricity to provide green ammonia for vessels, and thereby contributing to minimize emissions for maritime transportation,” said Gunnar A Gauthun, Hy2gen´s Hub Coordinator in Sauda.
“Availability of zero emission alternative fuels such as green ammonia is an important pre-requisite to decarbonising the global shipping industry. We also urgently need global policy-makers to cost neutralise the use of zero carbon fuels through carbon pricing measures to drive demand and enable to radically reduce emissions,” stated Rasmus Bach Nielsen, Trafigura’s Global Head of Fuel Decarbonisation.
“When we started looking for a location for our green ammonia plant in Norway, Sauda emerged as the epitome. The accessibility to abundant green energy from hydropower, a good harbour for exports, an attractive production site, a long regional industry history, and above all, the positive reception of the local authorities and businesses, encouraged us to choose Sauda as the future home of Iverson eFuels AS in Norway,” affirmed Cyril Dufau-Sansot, CEO of the Hy2gen Group.
When fully operational, the facility is expected to employ about 50 people and create a further 100 indirect jobs. The project team have already started the hiring process and will work together with local authorities to attract qualified personnel.
“We believe that this project is extremely interesting. In addition to jobs creation, significant investments will flow in over many years, by virtue of Iverson eFuels AS, Sauda would be put on the map of the energy transition. We wish Iverson eFuels AS all the best in the next steps and look forward to the inauguration of the production plant,” declared Asbjørn Birkeland, Mayor of Sauda.
Ammonia gas becomes liquefied at minus 33 degrees for storage and transportation. The highest safety regulations shall govern Iverson eFuels’ production, storage and delivery process in Sauda.
The project is supported by Agenda Vest and the UllaFørre fund.
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About Copenhagen Infrastructure Partners
CIP, headquartered in Copenhagen, Denmark, is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity and storage, and other energy assets. CIP manages eight funds, with approximately EUR 16 billion under management from approximately 100 international institutional investors from Europe, Asia, Australia and North America and multi-lateral organizations e.g., EIB. The Iverson eFuels Project will form part of CIP’s Energy Transition Fund, focused on power-to-x and other next generation renewable technologies in order to facilitate the decarbonization of hard-to-abate sectors such as agriculture and transportation
About Hy2gen AG
Founded in 2016, Hy2gen Group´s mission is to provide eFuels and green feedstock products reaching the highest purity standards and making them accessible and affordable at a competitive price as a sustainable solution at industrial scale for a global distribution.
Hy2gen´s headquarters is based in Germany and is currently planning, building, and investing in the production of green eFuels such as, hydrogen, methanol, ammonia and sustainable aviation fuel at locations in Norway (2019), France (2019), Germany (2016), Canada (2018), USA (2021). Hy2gen’s objective is to become the leader in the production of eFuels worldwide with targeted markets that includes the industry, agriculture, maritime and the mobility sectors. This first-mover advantage is underlined by a current project pipeline in planning and construction of 880 MW and a project pipeline of over 12GW in development.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals and Minerals, and Power and Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including a majority share of global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. With over 1,000 shareholders, Trafigura is owned by its employees and employs over 13,000 people working in 48 countries.