Aker, VNG sign term sheet for renewable ammonia from Norway
By on December 15, 2024
Offtake under negotiation since May 2023
Click to learn more. Aker Horizons and VNG H&V executives sign the new offtake agreement in Berlin. Source: VNG.
The pair have agreed to terms for the supply of renewable ammonia from Aker Horizons’ planned production plant in Narvik, northern Norway, to Germany. VNG will purchase up to 150,000 tons per year of ammonia from 2029, supplying it directly to its German customers or cracking it on arrival and supplying hydrogen. Aker’s Narvik plant will produce around 450,000 tons of green ammonia per year from 2029. The announcement follows a letter of intent signed in May 2023 for the supply of up to 200,000 tons per year from Narvik.
The agreement we have, especially when taking into account the actual uncertainties in the markets, is a very important step in our supply relationship. VNG considers Narvik Green Ammonia as one of the most promising and mature large scale green ammonia projects in Europe. We are opening up new perspectives and at the same time it is strengthening our energy partnership with Norway.
Konstantin von Oldenburg, Managing Director of VNG H&V in Aker Horizons’ official press release, 3 Dec 2024
Progressing from stated ambitions to firm contracts is what we need to realize industrial-scale production of green hydrogen and ammonia. With VNG signing on as a potential off-taker, distributing our product to clients in Europe’s most important energy market, the Narvik Green Ammonia project takes a significant step in this direction. Aker Horizons appreciates the trust placed in Narvik Green Ammonia and we look forward to continuing the close cooperation with VNG in the year ahead.
Knut Nyborg, Managing Director of Aker Horizons Asset Development in his organisation’s official press release, 3 Dec 2024
More renewable hydrogen in Norway
While Aker’s plans to develop a CCS-based hydrogen and ammonia plant with Shell have been put on hold, it is still leading development of two renewable facilities in Norway, based on grid-connected electrolysis. A small-scale facility in Rjukan (southern Norway) will produce electrolytic hydrogen for industry and mobility. And in the far northern village of Berlevåg, Aker and Varanger Kraft are developing a renewable ammonia plant, featuring 100 MW of electrolysers and powered by the nearby Raggovidda wind farm. This plant will produce ammonia fuel for the vessel MS Green Ammonia, with the ammonia also intended for industry and power generation fuel for the remote off-grid community.