Innovation Norway grants Aker Horizons up to 135M for green hydrogen production facility.

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Aker Horizons Asset Development (AAD), the hydrogen company of Aker Horizons, will receive up to 135 million Norwegian kroner in grants and loans from Innovation Norway to develop a large-scale green hydrogen production facility in Rjukan.

Press Release by Aker Horizons and Innovation Norway

"Development of new technology for the production and commercialization of green hydrogen is a crucial part of Norway's green transition. This is an innovative project with significant growth potential that can contribute to increased mainland exports," says Håkon Haugli, CEO of Innovation Norway.

The facility will be established in Rjukan, located in the municipality of Tinn in Vestfold and Telemark, and is expected to lead to increased employment and possibly attract new residents to Tinn.

"The production facility will have significant positive ripple effects for Tinn and contribute to the substantial strengthening of Tinn municipality and Rjukan as an important industrial location in Norway," says Ministre of Local Government and Regional Development Sigbjørn Gjelsvik.


"The hydrogen plant will result in investments of several hundred million kroner in Rjukan, as well as new green jobs. Hydrogen production utilizing waste heat can lead to the establishment of other industries that can benefit from it, thus facilitating circular economic development based on Rjukan's unique advantages. We have a close and good collaboration with both Tinn municipality, Rjukan Business Development, and other industrial actors in Rjukan to facilitate opportunities in these areas," says Ragnhild Stokholm, Project Director at Aker Horizons Asset Development.


Aims to eliminate the need for hydrogen storage

Currently, there are no viable solutions for delivering hydrogen without intermediate storage between production and delivery. AAD aims to develop solutions that can eliminate the need for hydrogen storage between production and logistics stages for compressed hydrogen. This can reduce the economic, technical, and safety risks that have hindered the establishment of large-scale green hydrogen production facilities.

The development of a value chain for sustainable production, distribution, and use of hydrogen is central to the government's roadmap for a green industry boost.

Jan Christian Vestre and Ragnhild Stokholm"The market for green hydrogen has significant growth potential. The government is committed to facilitating the production of green hydrogen in Norway. I became familiar with this project during a visit to Rjukan last year. They have impressive plans that can accelerate the development of a green hydrogen industry in Norway," says Minister of Trade and Industry Jan Christian Vestre.

There is expected to be significant growth in the demand for hydrogen in the coming decade, including its use as fuel for heavy-duty transport and shipping, as well as for decarbonizing industries currently using fossil fuels or hydrogen produced from fossil energy sources. Significant reduction in greenhouse gas emissions can be achieved by replacing them with hydrogen from water electrolysis based on renewable power. The investment in Rjukan can contribute to meeting this future demand.

Expected to benefit other projects

"We greatly appreciate Innovation Norway's support for our hydrogen project in Rjukan. Such targeted efforts from the support system contribute to risk mitigation and further development for scaling up hydrogen production. For example, our planned large-scale hydrogen and ammonia project in Narvik will benefit from the experiences gained from the Rjukan project. Our goal is for green hydrogen to become a profitable zero-emission alternative both in Norway and globally," says Knut Nyborg, CEO of Aker Horizons Asset Development.

Daily capacity of nine tons hydrogen

The initial size of the facility will be 20 MW, with a daily hydrogen production capacity of nine tons. If the project succeeds, it may lay the groundwork for further expansion with an additional 20 MW. Aker Horizons will mature the project towards a final investment decision by 2023, with possible production commencing in 2025.

The project is planned to be executed over a period of three years. The funding from Innovation Norway consists of 85 million kroner in grants and 50 million kroner in loans.

The development of a value chain for sustainable production, distribution, and use of hydrogen is central to the government's roadmap for promoting green industry

Aker Horizon Hydrogen 2

This is how the green hydrogen facility is expected to look. Illustration: Aker Horizons Asset Development