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Norwegian hydrogen company receives billions in support from the EU

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– Fantastic, says Energy Minister Terje Aasland (Ap) about a Norwegian company being among seven winners in the EU’s very first hydrogen auction. Photo: Rodrigo Freitas / NTB

Of NTB | 30.04.2024 13:24:43

Policy: The company is granted financial support equivalent to NOK 963 million to produce renewable hydrogen.

In Skipavika in Gulen municipality in Western Norway, the company will build a new ammonia factory at a cost of NOK 4 billion, with a planned opening in 2026.

In total, the EU distributes 720 million euros, close to NOK 8.5 billion, to the seven companies. The support is paid out based on how many kilograms of hydrogen are produced.

– This is fantastic news for the Norwegian hydrogen investment, says Aasland.

– It is gratifying to see that a Norwegian player is asserting itself internationally, says Bjelland Eriksen.

The hydrogen auction is the first in the EU’s hydrogen bank, which was established in 2022 as part of the EU’s Innovation Fund. The innovation fund is financed by the EU’s climate quota system (ETS), of which Norway is a part.

РThis is a big day for Norwegian industry, says Astrid Lilliestråle in Enova, which is the national contact point for the innovation fund in Norway.

The government is also focusing on building up hydrogen capacity in Norway. From 2021 to 2023, NOK 5 billion was allocated for hydrogen purposes through Enova.

Of the other six companies that have been awarded support in the first round, three come from Spain, two from Portugal and one from Finland.

Together, the seven companies will produce 1.58 tonnes of green hydrogen over the next ten years, which will mean that 10 million tonnes of CO2 emissions can be avoided.

The EU will announce a new hydrogen auction later this year, the European Commission states.

Both Energy Minister Terje Aasland (Ap) and Climate and Environment Minister Andreas Bjelland Eriksen (Ap) were quick to congratulate Skiga on Tuesday.

The European Commission received 132 bids from 17 different countries in the hydrogen auction, and a total of 719 million euros was awarded to seven projects.

(© NTB)

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