Holmaneset

Holmaneset GAP: - Green Ammonia Production to fill the gap in Europe’s energy supply (project number: 101132475)

The proposed Holmaneset Project will lead the way in green hydrogen and green ammonia production for Europe with a large-scale production plant in western Norway. Building on Norway’s advantageous hydropower, skilled workforce and proximity to the European market, the Holmaneset Project aims to kick-start the green energy value chain for Europe. Working together with domestic and European partners, the Project will contribute to the decarbonisation of hard to abate industries, such as shipping, given the Project’s location and Norway’s strong maritime heritage.

The production facility at Holmaneset will create jobs locally with ripple effects occurring regionally and nationally. The Project’s objectives align with both Norwegian and European ambitions of accelerating the green energy market, through the Norwegian government's roadmap - green industrial initiative and the European Commission’s REPowerEU Hydrogen Strategy.

Holmaneset Project Fact Sheet January 2024

Project Overview

The Holmaneset Project will utilise renewable energy to power an integrated green hydrogen and green ammonia process plant, complete with transmission infrastructure and port facilities, for the transport of green products to the Norwegian and European markets. It is located on the coast of the Nordgulen fjord, approximately 8 kilometres west of Svelgen in the Bremanger Municipality in western Norway.

The opportunity was identified through a Scoping Study completed in partnership with local Norwegian consultants and in consultation with the Bremanger Municipality. Consideration was given to a range of factors, such as existing grid and power capacity, proximity to existing infrastructure, land availability, water sources, topography, and the local environment and surrounding communities.

Fortescue has entered into a conditional long-term Power Purchase Agreement (PPA) with Statkraft. Power allocation has been confirmed by Statnett in agreement with regional grid provider Linja. Preliminary environmental and geotechnical site surveys have taken place since 2022 to capture seasonal variation for the impact assessment and to inform early engineering and design works.

The Project is currently in the Feasibility Phase with many activities being undertaken in parallel to progress to a Final Investment Decision and then construction.

The Feasibility Phase involves a regulatory Planning Process to rezone Holmaneset and the surrounding islands for industrial purposes. The initial ‘Planning Program’ in the Planning Process has been formally accepted by the Bremanger Municipality and the Project is progressing with the Planning Proposal, inclusive of Environmental and Social Impact Assessment and a Risk- and Vulnerability Assessment. In addition, a Quantitative Risk Assessment (QRA) will be undertaken by a certified third-party.

These assessments will be undertaken in dialogue with relevant regulatory bodies and in accordance with Norwegian and European legislation, as well as Fortescue’s own rigorous project assurance guidelines. Fortescue has a commitment to following good practice for managing environmental and social impacts, including the International Finance Corporation’s Performance Standards, Equator Principals and Green Hydrogen standard.

Fortescue is targeting the commencement of the Construction Phase in 2025, with the start of Operations in 2027. These targeted timeframes may change depending on the time it takes to go through the regulatory approvals process as well as technical and commercial preparations and a final positive investment decision from the Fortescue Board.

Production Process

The Holmaneset Project will produce green hydrogen and green ammonia. These products are created through two main processes:

Electrolysis: This is where electricity is passed through demineralized water causing water molecules to split into hydrogen and oxygen.
Ammonia Synthesis: This is where nitrogen from the air is combined with the hydrogen to create ammonia.

When these processes are undertaken using renewable energy, such as hydropower, the process produces zero carbon and the products can be referred to as green hydrogen and green ammonia. The green ammonia will then be stored in a refrigerated state and transported to the Norwegian and European markets by ship.

The production and distribution of green energy can contribute to creating a low-emission society, and it is also a step in the right direction to reducing greenhouse gas emissions globally.

More information on the green hydrogen and green ammonia production process, manufacturing and safety is available below.

Project Benefits

Through the Holmaneset Project, Fortescue hopes to contribute to the development of a local, regional and national value chain for green industry that results in increased employment, business and training opportunities – centred around maximising opportunities for Bremanger Municipality and the region.

Preliminary estimates indicate 35 to 70 jobs could be directly linked to production at Holmaneset. In addition, there will be indirect employment opportunities through the contracting of local suppliers to perform services, such as cleaning and maintenance.

Additionally, the production of green hydrogen and green ammonia creates by-products, such as oxygen, heat and water, which are used in other industries, such as aquaculture, water treatment, metals refining, fabrication processes, welding and glass, ceramic and paper manufacturing. Where practical, by-products, such as heat from the process, will be recovered and reused at the facility. Where this cannot be achieved, Fortescue will look for other opportunities to create a green energy circular economy.

To support this, the Bremanger Municipality, in collaboration with Fortescue, has commenced Project CircuS (Circular Svelgen). Project CircuS aims to identify opportunities for green business development through the reuse of the by-products generated by the Holmaneset Project. The Project has received financial support from the Vestland County, and will involve cross-sectoral engagement to develop sustainable business cases.

Long-term presences in Bremanger:

Fortescue aims to build a long-term presence in Svelgen and the region and wants to be a positive contributor to the local community. To support this development, Fortescue has prepared a Local Content Plan in consultation with local and regional government bodies, business associations and educational institutions. We recognise the need to commence this early to give individuals and businesses the time to prepare to maximise the benefits of such an opportunity. The aim of this Plan is to ensure we maximise opportunities for local training, recruitment and provision of goods and services, by ensuring clear channels of communication.

The Local Content Plan is focused on four key areas:

Green Energy Education: Offer green energy education in line with the school's STEM curriculum and generate interest in green energy career opportunities.
Developing competencies in green energy: Working with education and training institutions to develop the necessary skills that can contribute to green energy projects.
Delivery of goods and services: Collaborate with local and regional businesses and innovation environments to understand where there are goods and services supporting the project, with a particular focus on supporting small and medium-sized enterprises.
Research and development: Collaborate with universities and other stakeholders to explore how the project can contribute to a circular economy – particularly through the by-products of hot water and oxygen from hydrogen production to stimulate local economic development.

At a national level, the Confederation of Norwegian Enterprise (NHO) and the Norwegian Confederation of Trade Unions (LO), highlight in their hydrogen strategy that Norway has good prerequisites for creating new industry and increased employment in renewable hydrogen production. The conditions are favourable for rapid scaling and major market opportunities within a Norwegian and international focus area necessary to achieve the climate goals of the Paris Agreement. The EU has laid much of the framework through the target of increasing the European production of renewable hydrogen with 10 million tons, and importing a further 10 million tons by 2030.

A successful national strategy for renewable hydrogen production could contribute to an emissions reduction of 22 million tonnes of carbon in Norway and Europe, while creating 36,000 new jobs and contribute to a value creation of NOK 71 billion until 2030, according to the McKinsey report “Norway Tomorrow.”

It takes careful planning, time, money, consultation and input from many individuals and organizations to create a safe, responsible and viable project. Fortescue values feedback from the local community and is committed to having an open and transparent relationship with affected parties.

Updates on the project plans will be published on the website on an ongoing basis but if you have any specific questions, please contact us at: norway@fortescue.com. One of our team members will follow up.

Innovation Fund

The European Union (EU) has endorsed and chosen to significantly invest in Fortescue’s plans for a flagship green ammonia plant in Norway, awarding the Holmaneset Project a grant of €203,766,000 as part of its Innovation Fund.

The Innovation Fund is one of the world's largest funding programmes for the demonstration and commercialisation of innovative low-carbon technologies, financed by revenues from the auctioning of allowances from the EU's Emissions Trading System.

The Holmaneset Project will share in €3.6 billion being awarded to a series of innovative large-scale projects by the Innovation Fund.

Download the fact sheet about the EU project from CINEA.

Project Documents

Download Project documents here. These will be updated as the Project progresses.

Fact Sheets

Download these fact sheets for more information:

Contact

For further information on the Holmaneset Project, please contact us at Norway@Fortescue.com