Fortescue buys into Norway green hydrogen minnow to support Europe ambitions

Norwegian Hydrogen is the latest acquisition by Fortescue Metals, which has kicked NOK 100 million (A$13.5 million) into a capital raising and joins Japanese corporation Mitsui on the investor register as it seeks to roll out its ambitious green hydrogen plans.

The Australian miner and energy company’s investment will see it become the third largest shareholder in the Scandi minnow, which is valued at NOK 750 million, and is on the cusp of producing green hydrogen at two different sites. 

Its first hydrogen plant, a 3 megawatt (MW) facility that can produce 1.3 tonnes of hydrogen a day, is expected to be finished by the end of this year at Hellesylt, in Norway, and launch in 2024.

A joint venture with Danish company GrønGas A/S to use green hydrogen to make liquid biogas is set to start this year as well in Denmark. 

Norwegian Hydrogen’s big plan is to build a 270 MW plant with a 40,000 tonne capacity in Ålesund, in Norway. As of June, the project had been approved for a capacity of 20 MW.

“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,” says Norwegian Hydrogen CEO Jens Berge.

“The fact that a world-leading and recognised player like Fortescue will support our mission makes us proud, and at the same time it is a powerful signal of the position we have achieved in just a few years. We have big plans for the future, and with Fortescue on board we can definitely raise the level of ambition even further.”

The company is planning to supply both shipping and on-land heavy transportation, siting its facilities on coastlines and having set up a subsidiary called Vireon to start building hydrogen refuelling stations at Dombås, Stavanger and Vestby in Norway. 

Fortescue’s European ambitions

Fortescue’s investment in Norwegian Hydrogen is another step for the company to scale up the global green hydrogen value chain, and will help their own proposed projects in Norway, says Fortescue Energy CEO Mark Hutchinson. 

In February, the Australian company said it started early environmental and social feasibility studies for the 300 MW Holmaneset green hydrogen and green ammonia project. It also has plans for another 300 megawatt facility in the Hemnes municipality.

The miner locked in a 300 MW power supply deal for Holmanset in March with Norwegian energy giant Statkratf.

Joining with Nordic companies in the green hydrogen sector is “integral” to making sure those projects are successful, says Fortescue Norway country manager Thor Magnus Rovik.

“We have a local team dedicated to showing the world the huge potential Norway has as a leader in renewable energy, green hydrogen and green ammonia,” he says.

“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.”

Last year Fortescue invested $46 million in German company Tree Energy Solutions to develop what it says will be the world’s largest integrated green hydrogen project, and agreed to another $154 million for a stake in the under-construction Wilhelmshaven terminal.

It also invested an undisclosed sum in Zhero, which is touting green energy and hydrogen projects in Europe.

These are still small fry, however, compared to the $50 billion green hydrogen agreement that Fortescue chairman Andrew Forrest signed in early 2022 with German energy giant E.ON to deliver up to five million tonnes of green hydrogen by 2030.

The deal spruiked imports from the Australian company could begin as early as 2025.