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Over EUR 65 million for Hydrogen: Ensuring Supply Along the Norwegian Coast

Norway’s Enova has awarded NOK 777 million (EUR 65 million) in support to five coastal hydrogen production projects targeting the country’s maritime sector, the state-owned clean energy promotion agency announced on Tuesday. This is part of the government’s aims to cut emissions from domestic shipping and fisheries by 50% by 2030 and to encourage the advancement of low- and zero-emission solutions across all types of vessels.

The supported projects will provide a total production capacity of around120 MW, equivalent to around 40 tons of green hydrogen per day and an emissions reduction of 200,000 tons of CO₂ annually, under optimal conditions. This equals 5.5% of Norway's emissions from shipping and fishing, which totaled 3.66 million tons of CO₂ per year, according to Statistics Norway's 2022 data.

The five hydrogen production projects receiving support from Enova are:

  • Slagen Energy Hub, Vestfold: GreenH in collaboration with Grieg Edge, Esso Norge and North Ammonia. Support amount: EUR 12 million.
  • Project Kaupanes Expansion in Egersund, Rogaland: Kaupanes Hydrogen, owned by Hydrogen Solutions, Dalane Energi, and Eigersund Næring og Havn. Support amount: EUR 17.3 million.
  • Project HyFuel in Florø, Vestland: HyFuel, owned by Hydrogen Solutions, Fjord Base, and Sogn og Fjordane Energi. Support amount: EUR 15 million.
  • Hydrogen facility in Kristiansund, Møre og Romsdal: GreenH. Support amount: EUR 10 million.
  • Hydrogen facility in Bodø, Nordland: GreenH. Support amount: EUR 10.7 million. ​

Of the five facilities, four have announced plans to produce green hydrogen for coastal bunkering directly. Slagen Energy Hub also aims to generate green hydrogen as a means to produce 50,000 tonnes per year of ammonia in its first phase, while future phases would expand that to 200,000 tonnes per year.

Enova's support program for hydrogen production can cover up to 80% of total investment costs. The maximum funding per project is about EUR 42 million in Southern Norway, and about EUR 26 million in Central and Northern Norway. The program includes several competition requirements, and recipients risk a penalty of 5% of the support amount if they fail to use the funds.

The planned hydrogen production of around 40 tonnes per day would add roughly 0.7 TWh to Norway's annual power demand as of today, which equals roughly half a percent.

In December 2023, Enova announced a significant expansion of its focus on hydrogen and ammonia as fuels for the maritime sector, especially along the Norwegian coast. This includes new support programs for hydrogen production, infrastructure for both hydrogen and ammonia, and assistance for vessels powered by these fuels. This initiative aims to serve as a stepping stone for the use of hydrogen in Norwegian shipping.

The state-owned enterprise, funded by the government and electricity tariffs, has a remit to drive the country's shift towards a low-emission society by promoting sustainable energy production and energy efficiency. Enova has announced that a similar support program will be introduced for ammonia bunkering facilities for coastal shipping. It is planned to release preliminary program criteria for market feedback in the first quarter of 2025, with the final program launch scheduled for the second quarter 2025.