The new project will be built in Sauda on Norway’s southwestern coast and owned by Hy2gen, Trafigura and Copenhagen Infrastructure Partners. Hy2gen is already developing a similar hydro-ammonia project in Quebec. The plant at Sauda – dubbed the Iverson eFuels project – will feature 240 MW of electrolyser capacity, producing 600 tonnes per day (or more than 200,000 tonnes per year) green ammonia via renewable electricity. The owners intend to scale-up this capacity in the future. With the project now in the FEED stage, an FID is due by 2023, with construction starting the year after, and then full operations starting in 2027. Similar to the Quebec project, the partners indicate the produced green ammonia is destined for use as maritime fuel.
When we started looking for a location for our green ammonia plant in Norway, Sauda emerged as the epitome. The accessibility to abundant green energy from hydropower, a good harbour for exports, an attractive production site, a long regional industry history, and above all, the positive reception of the local authorities and businesses, encouraged us to choose Sauda as the future home of Iverson eFuels AS in Norway.Cyril Dufau-Sansot, CEO of the Hy2gen Group in the organisation’s press release, 3 Feb 2022
Strategic priorities for Trafigura & CIP
Over the last twelve months we’ve seen Trafigura take deliberate steps to secure future access to ammonia for use as a green maritime fuel:
- As a majortiy shareholder in Hy2gen, Trafigura hopes to develop a portfolio of green ammonia projects in Norway, Canada, France, Mexico and South Africa, all with access to renewable electricity and deep water harbors for easy ship access.
- A ten-year partnership with Hyundai Glovis will support the Korean logistics giant to begin shipping ammonia globally via VLGCs.
- A green ammonia export facility in South Australia was announced last month.
- And at COP26 last November, Trafigura were one of the founding partners of the First Movers Coalition, a new body that seeks to accelerate decarbonisation this decade via massive investment in technology solutions.
While for Copenhagen Infrastructure Partners, the new Sauda project is the latest in a long list of green ammonia production projects the investment giant is involved with:
- the GW-scale, offshore wind-powered production facility in Ejsberg, Denmark.
- the Murchison project in Western Australia, which will export green ammonia to Korea, Japan and Taiwan (also touted as GW-scale).
- the GW-scale HNH project in Chile, being developed with AustriaEnergy and Ökowind.
- and the multi-GW Project Catalina in Aragon, Spain.