Enova backs Norwegian shipping with investment in hydrogen production projects

November 5, 2024, by Aida Čučuk

To springboard the use of hydrogen in the Norwegian maritime industry, Enova has awarded over NOK 777 million ($70.92 million) to five hydrogen production projects.

Overview of the hydrogen points along the coast. Illustration/map: Enova

As disclosed, the aim of the support is to establish the first functioning value chain for hydrogen in Norway so that hydrogen can eventually become a more accessible and sustainable fuel.

“The projects that receive support will be part of a network of hydrogen producers along the Norwegian coastline, from Slagentangen in the southeast to Bodø in the north. This will make hydrogen more accessible to those who want to invest in sustainable shipping,” Nils Kristian Nakstad, CEO of Enova, said.

The recipients of the funding include:

Hydrogen plant in Slagentangen in Vestfold. Amount of support: NOK 144.11 million ($13.15 million).
Hydrogen plant in Egersund in Rogaland. Amount of support: NOK 206 million ($18.8 million).
Hydrogen plant in Florø in Vestland. Amount of support: NOK 180 million ($16.43 million).
Hydrogen plant in Kristiansund in Møre og Romsdal. Amount of support: NOK 118.66 million ($10.83 million).
Hydrogen plant in Bodø in Nordland. Amount of support: NOK 128.65 million ($11.74 million).

These projects provide a total production capacity of 120 MW, which corresponds to approximately 40 tons of hydrogen per day, Enova claimed, adding that collectively, the projects that have received support under its initiative, now and in 2022, will contribute to an emission reduction of 200,000 tonnes of CO2 per year. This corresponds to 5.5% of the national emissions from shipping and fishing of 3.66 million tonnes of CO2 per year, according to Statistics Norway figures from 2022.

Climate and Environment Minister Tore O. Sandvik stated: “These projects can cut emissions in Norway, but will also contribute to the transition in the rest of Europe and the world.”

Energy Minister Terje Aasland stated: “Congratulations to the projects that received support today. It is fantastic to see so many players investing in innovative and emission-free solutions. Norway has a long tradition as a leading maritime nation. What we do to develop emission-free solutions for maritime transport here at home could have significance far beyond our borders.”

To note, Enova has announced a strengthening of its investment in hydrogen and ammonia as fuel in the maritime sector through new support programs for both production and infrastructure for hydrogen, infrastructure for ammonia and support for hydrogen and ammonia vessels. Furthermore, it has been revealed that there will be a similar program for support of bunkering facilities for ammonia for shipping along the coast.  

In 2024, it was disclosed that a total of 15 green ship projects will receive NOK 1.2 billion (about $113.5 million) in support from Enova. As informed, a total of nine hydrogen and six ammonia vessels have been supported. Moreover, Enova granted NOK 143 million (about $13.6 million) in support of 17 shore power projects.