Fortescue Future Industries (FFI) says has locked in a long term contract for renewable power to supply its proposed 300MW green hydrogen and green ammonia facility to be built at Holmaneset in Norway.

The long term power purchase agreement has been signed with Norwegian energy giant Statkraft, and is presumably based around hydropower, which accounts for more than 90 per cent of the electricity produced by the company.

As with many of FFI’s announcements, the project to build a 300MW green hydrogen facility is still in its very early stages – a full feasibility study is yet to be conducted, and the deal with Statkraft is conditional on the project getting finance.

If it does go ahead, it will be one of the largest of its types in the world.

“There is an urgency to produce green hydrogen and green ammonia and support global decarbonisation as quickly as possible,” FFI chief executive Mark Hutchinson said in a statement.

“FFI has chosen to partner with Statkraft to develop one of its first green ammonia projects, because they are Europe’s largest renewable power generator.

“And (they) will play a key role to enable ambitious goals to reduce European greenhouse emissions and assist FFI to become a leader in green hydrogen and green ammonia production.”

The head of Statkraft markets division Hallvard Granheim said the deal was important for the development of green industry in Norway, and to help the country reach is net zero targets.

The Holmaneset Project site is approximately 8km west of Svelgen in Bremanger municipality, and was chosen for its access to port and other facilities.

FFI has huge ambitions for green hydrogen production, with major shareholder and iron ore billionaire Andrew Forrest settling a target of 15 million tonnes a year of green hydrogen, or ammonia production. According to one of his executives, that would require sourcing renewable capacity of around 400 GW.