Fortescue Metals Group and Statkraft have agreed to amend and extend their existing power purchase agreement for the proposed Holmaneset green hydrogen and green ammonia facility, pushing the agreement horizon to 2029 and converting it into a 10-year power supply commitment.
The Holmaneset project remains in the feasibility phase, underscoring the gap between early hydrogen ambitions and the regulatory, technical, and financial complexity now shaping project schedules. The amended PPA is designed to provide greater temporal flexibility as the project progresses through permitting, environmental assessments, and technical studies, all of which have emerged as critical path items for hydrogen developments across Europe.
Statkraft framed the renegotiation as part of its broader strategy to support new green industrial activity through long-term, competitive power arrangements. According to Hallvard Granheim, Executive Vice President for Markets at Statkraft, stable power contracts are a prerequisite for enabling industrial-scale decarbonization projects, particularly those with high and continuous electricity demand such as electrolytic hydrogen production.
From Fortescue’s perspective, the extension reflects a more measured approach to project execution. Project Director Gabriela Celin indicated that the revised agreement allows additional time to complete the approvals and studies required before committing capital at scale. That caution mirrors a wider trend among hydrogen developers, many of whom are reassessing timelines as cost inflation, supply chain constraints, and uncertain offtake conditions reshape project economics.
The PPA remains conditional on reaching financial close and the start of commercial operations, maintaining alignment between electricity supply commitments and project maturity. This conditionality highlights a persistent challenge in green hydrogen development: securing long-term power at competitive prices while final investment decisions remain exposed to policy support, market demand, and infrastructure readiness.
