Norway’s power company Statkraft and Norwegian investor Aker Horizons, through its portfolio company Aker Clean Hydrogen, have signed the collaboration agreement to jointly explore green hydrogen and ammonia production opportunities in India, targeting local steel and fertilizer industries.
Statkraft is a leading developer and generator of renewable energy with a substantial experience and presence in India. Aker Clean Hydrogen is a global integrated hydrogen, ammonia, and methanol producer.
The two partners will combine their expertise to explore fully-integrated renewable power generation and green hydrogen production in India, and green ammonia for domestic use and export.
“With considerable renewable energy production and market activities in India, Statkraft is well-positioned to capture green hydrogen opportunities in this huge and important energy market. Developing such opportunities helps us grow our business and reduce greenhouse gas emissions in India,” said Jürgen Tzschoppe, Statkraft’s executive vice president for international power.
Emissions from the steel and ammonia industries contribute to close to 9% of the global greenhouse gas emissions and are classified as hard-to-abate sectors.
The steelmaking and shaping process is highly temperature- and energy-intensive, usually powered by fossil fuels. Similarly, ammonia production for agricultural fertilizers uses natural gas (methane) or other fossil fuels to provide the hydrogen feedstock and the energy to power the synthesis process. Switching to green hydrogen offers an emission-free alternative for decarbonizing both these sectors.
India currently consumes approximately 7 million tonnes of grey hydrogen per year, making it the world’s second-largest hydrogen consumer. The country’s hydrogen demand is expected to reach around 12 million tonnes by 2030 and about 28 million tonnes by 2050. Its commitment to reach net-zero by 2070, announced during the 26th UN Climate Change Conference, will further increase green hydrogen demand.
“We are excited to join forces with Statkraft to accelerate the transition from grey to green solutions in India,” said Knut Nyborg, Chief Executive Officer of Aker Clean Hydrogen. “The potential environmental benefits from decarbonizing hard-to-abate industries like the steel and ammonia industry in India are substantial. India is a large hydrogen consumer, has supportive governmental policies, and benefits from world-class renewable energy resources, which offers significant opportunities for green hydrogen and ammonia production.”
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