Worldwide green hydrogen and ammonia producer Atome Energy has made a number of significant announcements regarding its Icelandic operations.
For the supply of up to 40 MW from geothermal and hydroelectric power, Atome’s 75%-owned Icelandic subsidiary, Green Fuel ehf (Green Fuel), has signed a non-binding term sheet with HS Orka, a major provider of renewable energy in Iceland, with the intention for both parties to enter a legally binding Power Purchase Agreement (PPA), subject to conditions, before year-end 2023. The electricity is expected to arrive in time for Green Fuel’s commercial operation to begin in 2026.
Together with the 40 MW from HS Orka, Green Fuel has also agreed to a Letter of Intent with ON Power, another firm in the nation that produces electricity from similar sources, for the provision of up to 20 MW of renewable energy, which is anticipated to be ready in 2027.
At the time of its start-up, which is slated for the end of 2026, Green Fuel’s green ammonia facility will be among the earliest large-scale green ammonia projects in Europe.
Iceland’s 100% green energy infrastructure, which is derived from baseload geothermal and hydro sources, makes it a good location for the production of green hydrogen and ammonia, with a significant emphasis on decarbonizing its domestic shipping and transportation sectors. The project by Green Fuel is completely in line with the domestic requirements of the nation.
As a replacement for marine fuel, Green Fuel’s green products have the potential to considerably decarbonize the maritime industry. In order to work together on the development of ammonia-powered fishing vessels, Green Fuel and Samherji, one of Iceland’s major fishing firms, have signed a Memorandum of Understanding (MoU). All sides have made early strides towards realising the zero-emission prospects in the industry, and a working committee has been formed.
The maritime industry in Iceland contributes significantly to the nation’s emissions and makes up about 30% of the economy of the nation. About 4% (144 million tonnes per year) of the CO2 emissions in the European Union come from maritime transport. Green ammonia is anticipated to account for 25% of all marine fuel worldwide by 2050.
The International Maritime Organization (IMO) and the EU’s tougher pollution laws have been one of the main forces behind the anticipated acceptance of alternative fuels for shipping, notably green ammonia.
While the EU’s Green Deal and Fit for 55 programmes have implemented limitations for greenhouse gas emissions from all vessels travelling within, to, and from EU ports, the IMO standards address energy efficiency, carbon intensity, and sulphur emissions. The Fit for 55 program’s overarching goal is to reduce carbon emissions by 55% by the year 2030. According to the Green Deal, shipping could begin participating in the EU’s emissions trading programme as early as 2024, giving shipping companies the financial backing they need to sign long-term contracts for the offtake of alternative fuels.