Support for Aker Horizons Asset Development

'Developing new technology to produce and commercialise green hydrogen is an important part of Norway's green transition. This innovative project has significant growth potential and could help increase mainland exports,' says Håkon Haugli, our CEO.

The facility will be established in Rjukan, in Tinn municipality in Vestfold and Telemark, and is expected to create more jobs and potentially attract new residents to Tinn.

'The production facility will generate significant benefits for Tinn and help strengthen Tinn municipality and Rjukan as an important industrial location in Norway,' says Minister of Local Government and Regional Development Sigbjørn Gjelsvik.

- The hydrogen plant will bring investments worth several hundred million Norwegian kroner to Rjukan, as well as new green jobs. Producing hydrogen while making use of surplus heat could lead to the establishment of other industries that can benefit from this heat, thereby facilitating the development of a circular economy based on Rjukan's unique advantages. We work closely with Tinn Municipality, Rjukan Næringsutvikling and other industrial companies in Rjukan to create opportunities in these areas, says Ragnhild Stokholm, Project Director at Aker Horizons Asset Development.

There are currently no effective solutions for delivering hydrogen without intermediate storage between production and delivery. AAD will develop solutions that could eliminate the need to store compressed hydrogen between the production and logistics stages. This could reduce the financial, technical and safety risks that have hindered the establishment of large-scale green hydrogen production facilities.

Developing a value chain for the sustainable production, distribution and use of hydrogen is a key part of the Norwegian Government's roadmap for a green industrial initiative.

‘The green hydrogen market has significant growth potential. The government is committed to facilitating the production of green hydrogen in Norway. I first learned about this project during a visit to Rjukan last year. They have ambitious plans that could help accelerate the development of a green hydrogen industry in Norway,’ says Minister of Trade and Industry Jan Christian Vestre.

Demand for hydrogen is expected to grow significantly over the coming decade, including as a fuel for heavy transport and shipping, and to decarbonise industries that currently use fossil fuels or hydrogen produced from fossil energy sources. Greenhouse gas emissions could be reduced substantially by replacing these with hydrogen produced through water electrolysis using renewable energy. The initiative in Rjukan could help meet this future demand.

'We greatly appreciate Innovation Norway's support for our hydrogen project in Rjukan. This kind of targeted support from the public funding system helps reduce risk and enables further development as we scale up hydrogen production. For example, our planned large-scale hydrogen and ammonia project in Narvik will benefit from the experience we gain through the Rjukan project. Our goal is to make green hydrogen a commercially viable zero-emission alternative both in Norway and globally,' says Knut Nyborg, CEO of Aker Horizons Asset Development.

The facility will initially have a capacity of 20 MW, producing nine tonnes of hydrogen per day. If successful, the project could pave the way for a further 20 MW expansion. Aker Horizons will develop the project towards a final investment decision in 2023, with production potentially starting in 2025.

The project is planned to run over a three-year period. Our financing combines NOK 85 million in grants with NOK 50 million in loans.