Magnora ASA has formed a partnership with Prime Capital and Troms Kraft for the development of a green marine fuel project in Norway’s Tromsø region.
The project entails producing green hydrogen in huge quantities and then converting it into green ammonia (NH3) and/or liquid organic hydrogen carriers (LOHC).
Tromsø is Northern Norway’s primary logistical center for land-based transportation, fishing, and other maritime industries. Tromsø is one of Norway’s major fishing ports, with over 3,000 fishing boat visits each year, and it’s also becoming a popular cruise destination. The region has a surplus of green electricity from hydropower and onshore wind, making it a desirable location for the generation of green fuels.
The project is presently in the feasibility stage, with a final investment decision expected in late 2022 to mid-2023, in accordance with Magnora’s early engagement approach. The green fuel project will be operational by 2025 if all goes according to plan.
“When it comes to the current energy shift, Magnora is quite hopeful. We think that green electricity-derived fuels, particularly in the marine industry, will play a key role in decreasing carbon emissions. Troms has all the components for success, including a renewable energy surplus, a big and creative maritime and fisheries industry, and a skilled industrial workforce. Magnora is thrilled to join forces with Troms Kraft and Prime Capital in a solid collaboration. Troms Kraft provides over 100 years of operating expertise as well as in-depth local understanding of the power sector and region. Prime Capital has a strong track record of renewable energy company growth in the Nordics, as well as a presence in Northern Norway,” adds Torstein Sanness, Magnora’s executive chairman.
The cooperation with Prime Capital provides the necessary financial and operational resources to complete and run big industrial projects. The firm is a green infrastructure investment and asset management firm with a committed staff of 110 experts from a variety of disciplines, including engineering, project management, and finance.
“The IPCC (UN) report is clear: all businesses must take immediate measures to mitigate the effects of global warming. Prime Capital is extensively involved in the Troms region through the large-scale wind farms Raudfjell and Kvitfjell (Nordlys Vind), and wishes to contribute to the local industry’s further green growth. In the short term, we believe there is a significant potential for green fuel production for local consumption, particularly in the shipping and fishing industries, and Prime Capital clearly sees the potential for national and international export from the region in the longer term,” says Mathias Bimberg, Prime Capital’s Head of Infrastructure.
Troms Kraft is a publicly owned power business based in Troms that generates, distributes, and sells electricity generated from renewable sources. The firm, which employs around 320 people, is dedicated to ensuring a clean power supply in order to combat climate change.
“We at Troms Kraft feel we can contribute significantly to the growth of new industries in our region. Strong collaborations, in our opinion, are the greatest way to do this. We feel that our consortium, which includes Magnora and Prime Capital, has a solid combination of local, national, and worldwide presence. With access to green power, thriving sectors like fishing and tourism, and an entrepreneurial spirit, we envision a bright future for our region,” says Erling Dalberg, Director of Market and Technology at Troms Kraft.