Fortescue Future Industries (FFI) has agreed to procure electricity for a 300-MW green hydrogen and ammonia production plant in Norway under a conditional deal with state-owned renewable energy generator Statkraft AS.
The green energy business of Australian iron ore giant Fortescue Metals Group Ltd (ASX:FMG) will offtake power under the agreement for a long-term period, Statkraft said on Thursday. The Norwegian group did not specify the exact duration of the contract and the power plants that will back the arrangement.
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The power volumes will go for FFI’s Holmaneset green energy complex, which is one of the company’s first green ammonia schemes. The Perth, Australia-based developer has conducted a scoping study and identified a site located 8 kilometres (5 miles) west of Svelgen in Vestland county’s Bremanger municipality. A feasibility study is currently ongoing.
The power purchase agreement (PPA) is conditional on the developer taking a positive final investment decision (FID) on the scheme. According to the project’s website, FFI will seek to kick off construction by 2025 and launch production in 2027.
“With this PPA we also contribute to green industry development in Norway. Green hydrogen and green ammonia are two of the solutions needed to decarbonise society – and reach the net zero target,” said Hallvard Granheim, executive vice president Markets at Statkraft.