Australia’s Fortescue Future Industries (FFI) has signed a conditional renewable power-purchase agreement (PPA) with Norway’s Statkraft for its planned 300MW Holmaneset green hydrogen and ammonia plant.

Feasibility studies for the project are underway, with the PPA conditional on FFI taking positive FID. The Australian developer aims to begin construction by 2025, with hydrogen production starting in 2027.

“FFI has chosen to partner with Statkraft to develop one of its first green ammonia projects, because they are Europe’s largest renewable power generator and will play a key role to enable ambitious goals to reduce European greenhouse emissions and assist FFI to become a leader in green hydrogen and green ammonia production,” says the firm’s CEO, Mark Hutchinson.

2025 – Planned construction start date for Holmaneset project

Statkraft’s renewables portfolio is dominated by hydropower plants, of which it operates 363 with a total capacity of more than 15GW. The company owns half of all reservoir capacity in Norway, which generates the vast majority of its electricity from hydropower. Statkraft is also expanding into wind power, with nearly 1.8GW of capacity installed worldwide. It claims to be the largest owner and operator of onshore wind projects in the Nordics.

Renewable PPAs for green hydrogen and its derivatives are few on the ground, owing to uncertainty around the sector’s bankability and competition with corporates and utilities.

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Author: Polly Martin