The EU investment in Fortescue’s project is part of the Innovation Fund, one of the world’s largest funding programs for the demonstration and commercialization of innovative low-carbon technologies, financed by revenues from the auctioning of allowances from the EU’s Emissions Trading System.
The grant allocated to the Holmaneset Project is a piece of €3.6 billion being awarded to a series of innovative large-scale projects by the Innovation Fund.
The planned green ammonia plant, west of Svelgen, aims to capitalize on the surplus renewable energy from the Norwegian transmission grid and ship the resulting green ammonia to domestic and European markets.
The project has been identified as a priority project by the Fortescue board, which recently approved an early investment decision in the project to see it progress toward front-end engineering design (FEED) before being considered for a final investment decision (FID).
The company is currently targeting construction to commence in 2025, and operations in 2027, pending final approvals from the board.
According to Fortescue, the EU Innovation Fund grant will be paid on the completion of specified project milestones, with the first installment to be paid on financial close.
Fortescue Energy CEO, Mark Hutchinson, said: “The Holmaneset Project is a great opportunity for Fortescue, Norway and Europe to develop a significant green energy value chain, and its selection for funding by the EU is a recognition of its significance to global decarbonisation efforts.
“Fortescue is leading the way to a future beyond fossil fuels, and we commend the EU for its leadership in joining with us to help kickstart a green ammonia industry in Norway and Europe.”
Fortescue Norway Country Manager, Thor Magnus Rovik, added: “The Holmaneset Project is integral to creating a new green economy for Norway and Europe at scale. The green hydrogen and green ammonia produced near Svelgen has the potential to replace fossil fuels in industries that find it difficult to cut emissions, like long-haul transport, shipping and heavy industry.
“This project will be important for Norway to achieve its ambitious targets to cut emissions and build sustainable industrial development, and those targets are crucial for overall emissions reductions across Europe.”
