Fortescue has secured €200 million ($219 million) in EU funding for its Holmaneset project, a 300MW green hydrogen and ammonia plant situated west of Svelgen, Norway.
The funding, sourced from the Innovation Fund and backed by revenues from the EU’s emissions trading scheme (ETS), marks a crucial milestone for Fortescue’s ambitious venture into the green energy sector.
The Holmaneset project, identified as a priority by Fortescue’s board, aims to harness surplus renewable energy from the Norwegian transmission grid to power 300MW of green hydrogen and ammonia production. This green energy hub aligns with Fortescue’s commitment to contributing to a new green economy for Norway and Europe on a significant scale.
The €200 million EU grant, allocated from the Innovation Fund, is tied to specific project milestones. The initial disbursement is contingent upon achieving financial close, with subsequent tranches linked to project development stages. Fortescue anticipates commencing construction in 2025, with the facility becoming operational by 2027.
Thor Magnus Rovik, Norway Country Manager at Fortescue, emphasized the project’s importance in advancing a sustainable industrial landscape, stating, “The green hydrogen and green ammonia produced near Svelgen has the potential to replace fossil fuels in industries that find it difficult to cut emissions, like long-haul transport, shipping, and heavy industry.”
The Holmaneset project aligns with Norway’s ambitious emission reduction targets and contributes to sustainable industrial development. Rovik highlighted the project’s significance for Norway, stating, “This project will be important for Norway to achieve its ambitious targets to cut emissions and build sustainable industrial development, and those targets are crucial for overall emissions reductions across Europe.”
Mark Hutchinson, CEO of Fortescue Energy, expressed gratitude for the EU funding, acknowledging it as a recognition of the project’s “significance to global decarbonization efforts.” This financial backing propels Fortescue’s commitment to playing a pivotal role in the global transition to green energy.
The funding announcement follows Fortescue’s strategic move to acquire a 12.5% stake in Norwegian Hydrogen, solidifying its position as the third-largest shareholder with an investment of almost NOK 100 million ($8.95 million). These collaborations underscore Fortescue’s commitment to driving advancements in the green energy landscape, positioning itself as a key player in the evolving hydrogen and ammonia sectors.
As Fortescue progresses through front-end engineering and design (FEED) towards the final investment decision (FID), the EU funding injects momentum into the realization of the Holmaneset project, symbolizing a landmark achievement in the pursuit of a sustainable energy future.