Aker Horizons and Statkraft have signed a collaboration agreement to jointly explore opportunities for green hydrogen and ammonia production in India and Brazil, with a focus on the steel and fertilizer industries.
Steel and ammonia industry emissions account for nearly 9% of global greenhouse gas emissions and are classified as difficult-to-abate sectors. Green hydrogen is an emission-free alternative to decarbonizing these industrial sectors, as well as a way to improve the two commodities’ supply security.
India’s cooperation
Aker Clean Hydrogen and Statkraft have agreed to explore joint development opportunities in India for fully-integrated renewable power generation and green hydrogen production, with a focus on domestic hard-to-abate industries like steel, as well as ammonia for domestic and export use. India’s steel industry produces around 100 million tonnes of steel per year. Green hydrogen can be used as a fuel and feedstock in India to replace grey, fossil-fuel-based hydrogen, coal, and natural gas. This will reduce CO2 emissions significantly while also improving the country’s energy security and making it less vulnerable to energy market volatility.
India is the world’s second largest consumer of grey hydrogen, consuming approximately 7 million tonnes per year. By 2030, the country’s current hydrogen demand is expected to be around 12 million tonnes, and by 2050, it will be around 28 million tonnes. India’s commitment to achieve net zero emissions by 2070, announced at the United Nations Climate Change Conference, will drive up green hydrogen demand in one of the world’s fastest-growing economies.
Brazil’s collaboration
In the Brazilian state of Bahia, Aker Clean Hydrogen, Statkraft, and Sowitec, a company specializing in developing renewable wind and solar assets, plan to collaborate on power-to-X projects. A large-scale hybrid project, which combines renewable energy generation with hydrogen and ammonia production for the local fertilizer industry, is the first project opportunity being pursued.
Brazil is the world’s fourth largest fertilizer consumer, consuming about 8% of global demand. Currently, more than 80% of the country’s consumption is imported. The Brazilian government recently passed the 2022-2050 National Fertilizer Plan, which aims to reduce Brazil’s reliance on imported fertilizers by attracting and supporting foreign investment, among other things.
Bahia has a strong agricultural industry that imports large amounts of grey, fossil fuel-based fertilizers, as well as favorable renewable resources such as wind and solar. By substituting locally produced green ammonia for imported grey ammonia, the local agricultural industry will be helped to decarbonize and import dependency will be reduced, while new green industrial opportunities will be created. By 2027, the project is expected to be fully operational.
