Fortescue to acquire 12.5% ownership interest in Norwegian Hydrogen

Home Hydrogen Fortescue to acquire 12.5% ownership interest in Norwegian Hydrogen

October 27, 2023,
by

Aida Čučuk

Fortescue, a global green energy, metals and technology company, has invested close to NOK 100 million ($8.9 million) to become a shareholder in Norwegian Hydrogen.

Illustration only; Archive; Courtesy of Norwegian Hydrogen

The investment will see Fortescue acquire a 12.5% ownership interest in Norwegian Hydrogen, becoming the third largest shareholder.

Fortescue Energy CEO Mark Hutchinson said: “Climate change is here now, and business needs to work together to combat it. Decarbonizing hard-to-abate sectors and stepping the world beyond fossil fuels is imperative to that, and to do that, we need to start producing green hydrogen and green ammonia at scale.”

“Fortescue’s investment in Norwegian Hydrogen is an important step in helping to scale up the entire green hydrogen value chain, which will not only help support our own proposed projects in Norway but the global green hydrogen and green ammonia industry.”

Norwegian Hydrogen CEO Jens Berge noted: “Fortescue’s entry into ownership is a clear expression of the strong international interest Norwegian Hydrogen is experiencing in its focus on the production and distribution of green hydrogen… We look forward to having Fortescue as an active owner and to working together to accelerate the transition to zero emissions.”

Norwegian Hydrogen emphasized the company is already building its first hydrogen plants at Hellesylt, at the entrance to the Geirangerfjord in Sunnmøre and in Hjørring in Denmark.

Earlier in 2023, the company announced plans to establish one of the Nordic region’s largest factories for the production of green hydrogen in Ålesund, and it also established the subsidiary Vireon, which has received Enova support for the construction of hydrogen refuelling stations for heavy-duty vehicles, at Dombås, Stavanger and Vestby in Norway, which are among the first of several such stations planned by Vireon in Norway, Denmark, Sweden and Finland.

Provaris and Norwegian Hydrogen launch 270MW green hydrogen project in Norway

In regard to Fortescue, it is developing a global portfolio of green hydrogen and green ammonia projects, with two potential projects already in the pipeline across Norway. The Holmaneset project in Bremanger is a 300-megawatt green hydrogen and green ammonia facility, while there are plans for another 300-megawatt facility in the Hemnes municipality.

Fortescue Norway Country Manager Thor Magnus Rovik said: “Joining with other Nordic companies like Norwegian Hydrogen is integral to ensuring our region continues to be a leader in generating and supplying green hydrogen products in Norway and across Europe.”

Statkraft to provide renewable power for Fortescue’s Holmaneset green project

To note, Fortescue is the second global company to become an owner of Norwegian Hydrogen. In August 2022, the Japanese corporation Mitsui did the same.

In parallel with the investment from Fortescue, Norwegian Hydrogen has also raised approximately NOK 50 million ($4.4 million) from current owners and a handful of new investors in its immediate network. This values the company at approximately NOK 750 million ($66.7 million) after raising capital, Norwegian Hydrogen claimed. The company is preparing to raise more capital as part of the next steps of its overall corporate development strategy.

Norwegian Hydrogen added it has also succeeded in receiving “soft” funding in the form of public support schemes for green energy projects in the Nordic region and is actively pursuing the relevant European support programs.