Investment green light for $50m landmark Norwegian hydrogen projects

Norway-headquartered Hydrogen Solutions AS (HYDS) has announced that two green H2 projects have reached final investment decision.

Both Hyfuel and Kaupanes are 20MW projects and they will now move into their construction phase.

Nel will supply its MC 500 containerised PEM electrolyser systems for both projects and the deal marks the company’s largest-ever order for PEM equipment, with a total order value of $50 million. Engineering support will be provided by Moreld Apply.

The hydrogen produced will be used decarbonise the local industries and the maritime sector. According to HYDS, this development has contributed to strengthening market conditions, developing the value chain and reducing risk for early commercial projects.

The Hyfuel AS project is owned by HYDS, Sogn og Fjordane Energi AS and Fjord Base Holding AS.

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The plant will be located at the supply base in Florø, one of the largest supply bases in the country. It’s a natural port and shipping point for goods to and from Sogn og Fjordane. The city has around 5,000 ship calling annually, and the base has 4,000-5,000 annual trailer visits, making the supply of greener fuels imperative.

Kaupanes Hydrogen AS is owned by HYDS, Dalane Energi AS and Eigersund Næring og Havn KF. The plant will be located in the Kaupanes industrial area in Egersund.

The project will see the expansion of the current plant, which opened in February 2024 and has a capacity of 388 kg hydrogen per day. The Kaupanes Expansion project represents the next step in scaling up Kaupanes Hydrogen as a maritime hydrogen hub in the region.

Norway has a rich history in hydrogen production. According to the Norwegian Hydrogen Forum, Norsk Hydro has produced and utilised hydrogen for large scale fertiliser production since 1927.

Over the decades, Norwegian companies, research institutes, and universities have developed strong competencies with hydrogen technologies. New companies along the entire value chain are being established, with new and established companies engaging in hydrogen.

The nation’s hydrogen strategy was presented by the Minister for Petroleum and Energy and the Minister for Climate and Environment in June 2020, emphasising the role of hydrogen as an energy carrier in contributing to decarbonisation and value creation for the Norwegian business sector.