Green hydrogen from HEGRA to secure Norwegian competitiveness

HEGRA was founded by Aker, Yara, and Statkraft with the goal of establishing a new business in Norway that gives a competitive edge in the rising global hydrogen economy, creates future green jobs, and lays the groundwork for a future Norwegian export sector.

The company is headquartered in Herya, Porsgrunn, and is chaired by Auke Lont, a former Statnett CEO. The business intends to electrify and decarbonize the Herya ammonia plant, enabling large-scale green ammonia production on a large scale. HEGRA is an acronym for HErya GReen Ammonia and is a joint venture between Yara, Aker Clean Hydrogen, and Statkraft.

Green ammonia produced with renewable energy would allow for the manufacturing of carbon-neutral fertilizer and is a prospective zero-emission fuel for the maritime sector. HEGRA will help to the development of a new sector based on a regional hydrogen and ammonia market, while ensuring the Norwegian maritime and processing industries’ survival and competitiveness.

“HEGRA is more than a new industrial company, it is Norway’s largest climate initiative. The decarbonization project will reduce CO2-emissions by 800,000 tonnes annually, equivalent to 300,000 fossil-fueled cars. It marks the beginning of developing a Norwegian value chain for green ammonia and hydrogen,” says Auke Lont, Chair of HEGRA’s Board.  

Norway’s maritime and processing industries are significant export businesses, employing more than 100,000 people. HEGRA will help secure and create jobs in new supply chains and through the ripple effects created by these sectors.

The international market is likely to see an increase in the prices of emissions in the processing industry as a result of regulations and customer demands. Norwegian industry and the maritime sector require access to clean hydrogen and ammonia in order to accomplish the necessary emission reductions.

HEGRA brings together the best minds in ammonia, project development, and energy markets in Norway. If power is available on-site and the necessary public co-funding is in place, the project might be completed in as little as 5-7 years.

“HEGRA is geared specifically at meeting the ambition of the European Commission’s «Fit for 55» package, which aims to reduce EU emissions by 55 per cent by 2030. HEGRA will give Norway a competitive advantage within renewable energy and hydrogen and put Norway in a great position to reach climate ambitions,” says Lont.

The Norwegian maritime industry has committed to halving its emissions by 2030. Access to zero-emission fuel will be critical to achieving this aim. Norwegian green ammonia will immediately become a global commodity due to the existing global infrastructure for ammonia. With an abundance of renewable energy, Norway is well positioned to grab a sizable portion of the burgeoning global green hydrogen and ammonia value chain.

According to a 2020 research by The Confederation of Norwegian Enterprise, the hydrogen sector has the potential to become an important export industry for Norway, with an expected turnover of NOK 10 billion in 2030 and NOK 70 billion in 2050.

“The timing of HEGRA is important because it will be key to establish a well-functioning domestic and regional market before the global demand for ammonia increases. We look forward to engaging with authorities and the industry on how to realize one of the first large-scale industrial projects within green hydrogen and ammonia in Norway,” says Lont.

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