Norway is accelerating its green hydrogen ambitions as the Hyfuel (Florø) and Kaupanes Hydrogen (Egersund) projects reach final investment decision, each set to deliver 20 MW of green hydrogen production capacity.
Targeting the maritime, transportation, construction, and industrial sectors, these facilities mark a pivotal step in scaling renewable hydrogen for applications where direct electrification remains limited.
Over the past year, project developers HYDS, alongside co-owners and industrial partners, completed commercial structuring, permitting, engineering planning, and main equipment contracting, paving the way for execution. Electrolyzers for both plants will be supplied by NEL Hydrogen, while Moreld Apply will support engineering, installation, and project execution, emphasizing Norwegian industrial capabilities and local value creation.
The Hyfuel plant, located at the supply base in Florø, is owned by HYDS, Sogn og Fjordane Energi AS, and Fjord Base Holding AS. Kaupanes Hydrogen, situated in the industrial area of Egersund, is co-owned by HYDS, Dalane Energi AS, and Eigersund Næring og Havn KF. Both projects are positioned to leverage local expertise, boosting employment and industrial activity while embedding Norway’s hydrogen economy in regional supply chains.
Market signals suggest increasing demand for green hydrogen, particularly in sectors where decarbonization options are constrained. Maritime shipping, industrial processes, and heavy construction equipment represent high-impact segments that require scalable renewable hydrogen solutions. By entering construction, the Hyfuel and Kaupanes projects mitigate early commercial risks, providing proof of concept for further investments and strengthening Norway’s position in the Nordic hydrogen market.
The projects’ combined 40 MW capacity will contribute to competitive hydrogen pricing and supply security, supporting the broader EU and Norwegian climate targets. Analysts note that securing local supply chains, integrating domestic industrial capabilities, and committing to renewable energy inputs are key to ensuring long-term economic and environmental returns.
With execution underway, these projects not only reinforce Norway’s leadership in green hydrogen production but also establish practical pathways for industrial-scale, zero-emission solutions across transport, mobility, and industrial sectors, setting benchmarks for the wider Nordic region.
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