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HydrogenPro to co-operate with Kvina Energy Park on developing a hydrogen hub in Kvinesdal, Norway
April 28, 2021 – HydrogenPro and Kvina Energy Park (KEP) have entered into a co-operation agreement on the development of a significant hydrogen hub in the Kvinesdal municipality in Norway.
Earlier this year, KEP announced plans for large scale hydrogen production in Kvinesdal at an area close to the Feda fjord. With its’ location adjacent to the main electricity grid in Norway it is expected a yearly allocation of 500-800MW electricity which will provide the basis for annual production of around 100 000 tons of hydrogen gas. The pertinent CO2 reductions are estimated at 190 000 tons per year provided that such hydrogen volume is used to replace hydrogen derived from fossil sources. The location of the land also offers easy connection to transportation by road, sea and train.
The cost of electricity is the single most important driver of the current cost differential between green hydrogen and fossil hydrogen. HydrogenPro´s new and enhanced technology improves plant efficiency and reduces power consumption by 14%. Due to its location close to the main grid, HydrogenPro and KEP expect that hydrogen produced at Kvina will be competitive in the market estimated to be as low as USD 1,2 pr kg assuming access to attractively priced electricity.
KEP is in the process of obtaining the necessary industrial land regulation to accommodate for hydrogen production, combined with developing industrial applications for long term allocation of electricity. KEP will also accelerate the development of new value chains for green hydrogen.
The parties will establish a new company to be jointly owned, Kvina Hydrogen AS, which will engage in the industrial and commercial development of the project. The founders of KEP will provide day-to-day management and the industrial and commercial development. HydrogenPro will support and assist with design and optimalization of electrolyser plants and support the dialogue and communication with industrial users of hydrogen and in the development of new value chains for hydrogen.
The municipality of Kvinesdal is excited and positive about these plans for developing a hydrogen hub and the mayor, Mr. Per Sverre Kvinlaug states as follows: “The plans which are presented to us are very exciting. Our location relative to the main electricity grid, train, road and sea makes Kvinesdal attractive in a national perspective. Green hydrogen is going to play an increasingly important role in the energy transition, both in Norway and internationally. We are highly supportive of this initiative and believe this will create additional employment in Kvinesdal.”
The CEO of HydrogenPro, Mr Mårten Lunde, states as follows: “Kvinesdal is an attractive location for developing a powerful center for hydrogen production in Norway. Plentiful access to affordable electricity, easy transportation and not at least, engaged and focused entrepreneurs make us believe in a successful development of the project. We will from our side supply resources and competence from optimalization of large-scale electrolyser plants and assist in communication and discussions with clients and in developing new value chains for hydrogen. Such developments take time, but we clearly see that ambitions and plans are becoming increasingly realistic and expect this development to accelerate”.
The chairman of Kvina Energy Park, Tore Knapskog, comments that “we are delighted to team up with HydrogenPro in developing our hydrogen ambition. This, in combination with the active support of the municipality, make us very excited about our future opportunities”.
For more information, please contact:
Mårten Lunde, CEO
+47 48 14 84 51
Martin T. Holtet, CFO
+47 92 24 49 02