Yara to go solo for Heroya decarbonisation project as Aker, Statkraft exit

Norwegian fertiliser company Yara International ASA (OSE:YAR) will continue the realisaton of its decarbonisation project at the ammonia plant in Porsgrunn but not in a partnership with Aker Clean Hydrogen AS and Statkraft AS, which have decided to leave the development.

Over the past year, the trio has been looking into the feasibility of electrifying Yara's ammonia plant at Heroya and set up a project joint venture called Hegra. After conducting a feasibility study, the three companies have determined that the project is viable.

However, the development will not progress under the current ownership structure because Statkraft and the majority-owned clean hydrogen business of Aker Horizons ASA (OSE:AKH) have chosen to exit the project, leaving Yara as the sole owner. They cited “commercial and strategic reasons” for their decision, without elaborating.

Yara will now continue developing the project towards a final investment decision, it said, while Statkraft and Aker Horizons will seek to develop further green hydrogen and ammonia projects together. According to the announcement on Tuesday, “the companies are still open to cooperating in parts of the value chain.”

The fertiliser producer said that earlier in March it held a groundbreaking ceremony for a pilot project at Heroya, envisaging the installation of a 24-MW electrolyser. The purpose of the pilot is to provide valuable technical and commercial learning.

As previously stated, the full-scale project is expected to eliminate 800,000 tonnes of carbon dioxide (CO2) emissions annually.

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