Design and engineering studies are underway for the next stage of the construction of a green ammonia production plant to produce fuel for the marine sector. According to the investment group, the facility known as Iverson eFuels AS could start production as early as 2027.

Commodity and energy trading group Trafigura has announced that it is joining forces with Danish renewable energy infrastructure investors Copenhagen Infrastructure Partners and Germany’s Hy2gen to invest in the development and construction of the facility to be located on the southwest coast of Norway. The consortium plans to invest significant capital in production, storage and shipping facilities as it seeks to be one of the first large-scale sites for production and shipping of the emerging alternative fuel. The Iverson project is also supported by Agenda Vest and the UllaFørre fund.

“We will produce green ammonia through electrolysis technology, using clean electricity to deliver green ammonia to ships, and thereby help minimize emissions for shipping,” said Gunnar Gauthun. , Hy2gen’s hub coordinator for the project in Sauda, ​​Norway.

The Iverson project will have an initial electrolyser capacity of 240 megawatts to produce 600 metric tons of green ammonia per day, with the aim of significantly increasing production in the future. Green Ammonia will provide the shipping industry with a carbon-free alternative marine fuel to traditional fossil fuels.

“When we started looking for a location for our green ammonia plant in Norway, Sauda stood out as the epitome,” says Cyril Dufau-Sansot, CEO of Hy2gen Group. “Accessibility to abundant green energy from hydroelectricity, a good port for exports, an attractive production site, a long history of regional industry, and above all, the positive reception of local authorities and businesses , encouraged us to choose Sauda as the future home of Iverson eFuels AS in Norway.

Together with Norconsult, the partners report that a pre-study was completed in 2021 and they have now entered the Front End Engineering Design (FEED) phase. They expect this to result in a full plan to build the facility by 2023. Following a final investment decision, construction is scheduled to begin in the first quarter of 2024 and the facility will be fully operational in early 2027.

“The availability of zero-emission alternative fuels such as green ammonia is an important prerequisite for decarbonizing the global shipping industry,” notes Rasmus Bach Nielsen, Global Head of Fuel Decarbonization at Trafigura. Trafigura has moved aggressively to be at the forefront of the new energy economy, but it notes the range of challenges that remain for the development of the sector. “We also urgently need global policymakers to neutralize the costs of using carbon-free fuels through carbon pricing measures to stimulate demand and enable radical reductions in emissions.”

Hy2gen launched its Norwegian company in 2019 and Trafigura recognized the key future role and potential of industrial production of green hydrogen and ammonia as an early investor. In the summer of 2021, Hy2gen and Trafigura have agreed to collaborate on a study to quantify the shipping industry’s needs for green ammonia as the industry transitions to low and zero carbon marine fuels. The study examined the aspects necessary to enable large-scale commercial adoption, including the required quantities of green ammonia and the transport and storage capacities that will be needed to meet the needs of the maritime industry.