HydrogenPro and Kvina Energy Park (KEP) have agreed to work together on the construction of a major hydrogen hub in Norway’s Kvinesdal municipality.
KEP announced plans for large-scale hydrogen production in Kvinesdal, near the Feda fjord, earlier this year. Because of its proximity to Norway’s main electricity grid, a yearly allocation of 500-800MW electricity is planned, which will provide the basis for annual output of around 100 000 tons of hydrogen gas. If this hydrogen volume is used to substitute hydrogen extracted from fossil sources, the CO2 reductions are expected to be 190 000 tons per year. The land’s position also allows for convenient access to transportation by road, sea, and rail.
The current cost difference between green hydrogen and fossil hydrogen is primarily driven by the cost of energy. HydrogenPro’s latest and improved technology increases plant productivity while lowering power consumption by 14%. HydrogenPro and KEP believe that, due to its proximity to the main grid, hydrogen generated at Kvina would be competitive in the market, with prices as low as USD 1,2 per kilogram assuming access to reasonably priced electricity.
KEP is working on getting the requisite industrial land regulations in place to accommodate hydrogen production, as well as developing industrial applications for long-term electricity allocation. KEP would also hasten the growth of new green hydrogen value chains.
The parties will form Kvina Hydrogen AS, a joint-stock company that will be responsible for the project’s industrial and commercial growth. KEP’s founders will be in charge of day-to-day operations as well as industrial and commercial production. HydrogenPro can help with the design and optimization of electrolyser plants, as well as the dialogue and coordination with industrial hydrogen users and the production of new hydrogen value chains.