The ammonia plant will be located in the town of Narvik just above the Arctic Circle. The location has strategic significance, with a deepwater, year-round ice-free harbour due to the Gulf Stream.

Historically, the town rose to prominence in the 19th century when it became the preferred port to export iron ore from mines in northern Sweden, given the development of a rail connection. As a strategic port, needed for the delivery of iron ore for German steel production, Narvik was a target during World War II and was recaptured by the Allied Forces in May 1940. Narvik’s export facilities are still in operation today, exporting more than 20mn t/y of iron ore.

The NGA project plans to leverage access to baseload, competitive renewable power in northern Norway together with deepwater port access to produce and export green ammonia for various applications, including alternative shipping fuels, as a hydrogen carrier for efficient transport and storage, and as a replacement for fossil fuels in industrial processes and electricity generation.

Success factors 
Key success factors for green ammonia production include access to abundant renewable power, strong grid connection, short distance to key markets and an accessible and efficient export route for offtake, with both local political and community support.

The Narvik region meets all those criteria.

Renewable power: The region’s power production is mainly based on hydroelectric power and some onshore wind power. Therefore, the energy resources via the grid are 100% renewable, making the location ideal for green hydrogen production and ammonia synthesis.

Baseload power from hydroelectricity: The hydroelectric power used in the Narvik region is generated in many locations, with water reservoirs routed through turbines to produce power on demand when needed. These reservoirs effectively act as ‘large batteries’, with clear cost advantages for the project. No investments are required in hydrogen storage or battery storage, and the electrolysis capacity is aligned with the baseload.

Export infrastructure: Just as with the iron ore, exporting green ammonia from Narvik is easier with the ice-free port. The proximity to Europe also offers effective logistics and lowers the risk of shipping disruptions.

Local political support: Narvik’s political leaders have welcomed the NGA project, seeing it as an opportunity for the region to take a leading role in developing green industries, which also contribute to the European clean hydrogen economy.

Market, offtake and policy support 
The European Union (EU) has set ambitious targets for ramping up green hydrogen and hydrogen derivative production, to meet the initial target of 10mn tonnes of production and 10mn tonnes of import of green hydrogen and its derivatives by 2030.

To achieve this, Europe needs to scale up supply quickly and introduce green hydrogen made with 100% renewable energy. Such a strategy will allow for rapid decarbonisation aligned with the goals of the Paris Agreement. The NGA project has an ambition to contribute towards these goals.

Hydrogen has the potential to rapidly decarbonise hard-to-abate sectors such as fertiliser, refineries, metals, glass and chemicals. Replacing grey hydrogen, which is based on natural gas combustion with green hydrogen, is essential for the further reduction of CO₂ emissions, contributing to greater regional energy autonomy and security.

The NGA project has the ambition to make a material impact on the emissions reductions of European industry, by bringing significant, cost efficient, green energy to European markets. Norway aspires to be a reliable supplier of clean hydrogen to Europe, building on its heritage as a supplier of both electricity and gas. The location of NGA and its proximity to key continental ports ensures competitive logistics as well as potential to support green shipping.

The Narvik Green Ammonia project has the ambition to make a material impact on the emissions reductions of European industry, by bringing significant, cost efficient, green energy to European markets.

The electricity is sourced from the grid in northern Norway and is 100% renewable, compliant with the EU Renewable Energy Directive and the Delegated Act requirements. Narvik also has a favourable grid connection, as it is located close to a 420 kV central grid transformer station. The NGA project has already secured an allocation of 430 MW grid capacity from the national grid operator Statnett.

In 2023, Aker Horizons signed a letter of intent (LOI) with the German gas group VNG for the potential supply of up to 200,000 t/y of green ammonia from the project. As per 2024, LOIs totalling more than three times the planned production volumes for the NGA project have been secured.

Germany is paving the way on hydrogen imports as a route to decarbonise heavy industry and lower the nation’s emissions. In 2023, the German and Norwegian governments established a joint task force with the intent to ensure a large-scale supply of hydrogen from Norway to Germany by 2030.

However, there is a need for government support and technological advancements to scale-up green ammonia production efficiently and cost-effectively, in order to ensure its competitiveness in the market.

Despite the favourable conditions and strong offtake interest in Europe, green ammonia is still at a cost disadvantage relative to fossil-based production. Public funding will be required to close this gap, commonly referred to as the ‘green premium’. Fortunately, several relevant funding schemes will be available in coming years, including support from the EU Innovation Fund, the second EU Hydrogen Bank auction, and an auction for green hydrogen imports under the German H2Global scheme.

The project partners believe that the NGA project offers a critical step forward towards achieving the EU’s climate-neutrality goals, while also creating a more sustainable and independent energy system in Europe.

Facility and process overview  
The NGA project aims to produce green ammonia (NH3) from renewable power, using two essential feedstock gases: hydrogen and nitrogen. Renewable power will be used to produce hydrogen through electrolysis of water, and nitrogen will be produced from air through a cryogenic distillation process, cooling the air to a liquid, which allows for the separation of nitrogen from other gases (such as oxygen, water vapour, argon and CO₂).

The hydrogen will be combined with nitrogen to produce ammonia in a Haber-Bosch process. This process is already widely used today; however, most of the hydrogen produced today is produced by reforming hydrocarbons or via the gasification of coal (also called ‘grey ammonia’). Using current grey methods, the amount of CO₂ emissions from ammonia production is around 1.6 tonnes of CO₂ per tonne of ammonia produced.

Today, grey ammonia produced in that process is a significant source of carbon emissions due to the energy-intensive nature of the production process. This method relies on hydrogen production from fossil fuels like natural gas, coal or oil, leading to the release of CO₂ as a by-product.

In contrast, green ammonia production aims to use renewable energy sources for hydrogen generation.

Water access is also essential to produce hydrogen and ammonia. Desalinated and demineralised water intake from the adjacent fjord will be the feedstock for the facility, together with the renewable power.

Additional resources and support systems are required to ensure the safe and efficient operation of the plant, including a cooling system, which removes excess heat generated during the production of hydrogen. A tremendous amount of heat is generated that can potentially be harnessed for local industry, fish farming, food production or district heating. The project is currently evaluating a range of options for excess heat utilisation.

CGI rendering of the NGA plant, showing the potential layout at the hydrogen/ammonia location
Photo: Aker Horizon

The location of the green ammonia facility in Narvik covers a site in Kvandal with approximately 160,000 m² of land. As mentioned, the Kvandal site is located 800 metres from a major substation, part of the Norwegian high voltage (420 kV) grid network operated by the transmission system operator (TSO), Statnett. Proximity to the grid provides the site with access to renewable power and agreements are already in place for a concession of 430 MW. This concession will make this the largest single point power connection in Norway when the project is realised.

The NGA project will create a significant onshore production facility. The Kvandal site will integrate the power supply and host hydrogen, nitrogen and ammonia production sites, along with additional support systems.

A route will be constructed from Kvandal to the port for marine-based export. Kvandal is about 5 km from the port offloading site, where the ammonia will be transported to customers via ship. The site, located at Lailasletta, will also feature ammonia storage, offloading facilities and the centre for the desalination of seawater. To connect Kvandal to Lailasletta, an ammonia pipeline will be constructed via tunnels through a mountainous region to the port.

The project team is working towards reaching Decision Gate 2 for the project in mid-2024, and is due to make a final investment decision (FID) in 2025. Should a FID be made, the NGA project is scheduled to begin operation in 2028, paving the way for a greener industrial future for Europe. 

• Further reading: ‘Hydrogen exports could shift to ammonia production by 2035 despite trade uncertainties’. As hydrogen gains prominence in the global pursuit of decarbonisation and energy security, many major infrastructure projects are considering its transportation in the form of ammonia, suggests Rystad Energy.
• Find out why strong policy support is vital to develop the global market for low-carbon ammonia.