Aker Horizons, through its portfolio company Aker Clean Hydrogen, and Statkraft
have signed collaboration agreements to jointly explore opportunities for green
hydrogen and ammonia production in India and Brazil, targeting local steel and
fertilizer industries.
The collaboration brings together Aker Clean Hydrogen, a global integrated
hydrogen, ammonia and methanol producer building on Aker's 180 years of
industrial heritage, and Statkraft, a leading developer and generator of
renewable energy with a substantial experience and presence in India and Brazil.
"We are excited to join forces with Statkraft to accelerate the transition from
grey to green solutions in India and Brazil," 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 and the fertilizer industry in Brazil are substantial. Both India and
Brazil are large consumers of hydrogen, have supportive governmental policies
and benefit from world-class renewable energy resources, which offers
significant opportunities for green hydrogen and ammonia production."
Emissions from the steel and ammonia industries contribute to close to 9 percent
of the global greenhouse gas emissions and are classified as hard-to-abate
sectors. Green hydrogen provides an emission-free alternative to decarbonizing
these industrial sectors and an opportunity to increase security of supply of
the two commodities.
Cooperation in India
Aker Clean Hydrogen and Statkraft have agreed to explore joint development
opportunities of fully-integrated renewable power generation and green hydrogen
production in India, targeting domestic hard-to-abate industries such as the
steel industry, as well as ammonia for domestic use and export. The steel
industry in India produces about 100 million tonnes of steel annually. In India,
green hydrogen can be used to replace grey, fossil fuel-based hydrogen, coal and
natural gas as fuel and feedstock. This will significantly reduce CO2
emissions, while bolstering the country's energy security, making it less
vulnerable to energy market volatility.
India currently consumes approximately 7 million tonnes of grey hydrogen per
year, making it the world's second largest hydrogen consumer. The country's
current hydrogen demand is expected to reach approximately 12 million tonnes by
2030 and about 28 million tonnes by 2050. India's commitment to reach net zero
by 2070, announced during the 26th UN Climate Change Conference, will further
increase green hydrogen demand in one of the fastest growing economies in the
world.
Cooperation in Brazil
In Brazil, Aker Clean Hydrogen, Statkraft and Sowitec, a company specializing in
developing renewable wind and solar assets, aim to jointly develop power-to-X
projects in the state of Bahia. The first project opportunity being pursued is a
large-scale hybrid project, which combines renewable power generation, and
hydrogen and ammonia production for the local fertilizer industry.
Brazil is the world's fourth largest consumer of fertilizers, accounting for
about 8 percent of global demand. Currently, the country imports more than 80
percent of its consumption. Recently the Brazilian government enacted their 2022
-2050 National Fertilizer Plan, seeking to reduce the Brazilian dependency on
imported fertilizers by, amongst other means, attracting and supporting foreign
investments.
The state of Bahia has favorable renewable resources from wind and solar and a
strong agricultural industry that imports large amounts of grey, fossil fuel
-based fertilizers. Replacing imported grey ammonia with locally-produced green
ammonia will support the decarbonization of the local agricultural industry and
reduces import dependency, while creating new green industrial opportunities.
The project is scheduled to be in commercial operation by 2027.
"With considerable renewable energy production and market activities in India
and Brazil, Statkraft is well positioned to capture green hydrogen opportunities
in these two huge and important energy markets. Developing such opportunities
helps us grow our business and reduces greenhouse gas emissions in India and
Brazil," said Jürgen Tzschoppe, Executive Vice President International Power of
Statkraft.
ENDS
Investor contact:
Christian Yggeseth, mob: +47 915 10 000, email:
christian.yggeseth@akerhorizons.com
Media contact:
Mathias Nilsen Reierth, mob: +47 988 05 724, email:
mathias.reierth@akerhorizons.com
Ivar Simensen, mob: +47 46 40 23 17, email: ivar.simensen@akerhorizons.com
About Aker Clean Hydrogen
Aker Clean Hydrogen aims to develop, build, own and operate clean hydrogen
production on an industrial scale. Aker Horizons is the majority shareholder of
the company, and Aker Clean Hydrogen uses domain expertise across the Aker
group, including systems integration, engineering, technology development,
project implementation, digitalization and financial optimization to increase
efficiency and reduce project costs. The company aims to reach a net installed
capacity of 5 GW by 2030, and will make a major contribution to realizing the
hydrogen industry and reducing greenhouse gas emissions
globally. www.akercleanhydrogen.com (https://eur01.safelinks.protection.outlook.
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On 30 March 2022, Aker Clean Hydrogen and Aker Horizons announced a merger plan
that will reposition Aker Clean Hydrogen as a privately held subsidiary of Aker
Horizons. The merged entity will continue serving the fast-growing global
markets for hydrogen, ammonia and methanol, building on ACH's portfolio of
projects to decarbonize hard-to-abate sectors.
Completion of the merger is subject to customary closing conditions, including
approval by the shareholders of ACH and the Board of Directors of Aker Horizons
resolving to issue the consideration shares pursuant to a board authorization.
Aker Horizons has undertaken to vote in favor of the merger at ACH's annual
general meeting scheduled on 4 May 2022.
About Aker Horizons
Aker Horizons ASA is a planet-positive investment company dedicated to
developing companies within renewable energy and other technologies that reduce
emissions or promote sustainable living. The company is listed on the Oslo Stock
Exchange and majority-owned by Aker ASA. Aker Horizons' investment portfolio
includes Aker Carbon Capture, Aker Clean Hydrogen, Aker Offshore Wind and
Mainstream Renewable Power. www.akerhorizons.com
About Statkraft
Statkraft is a leading company in hydropower internationally and Europe's
largest generator of renewable energy. The Group produces hydropower, wind
power, solar power, gas-fired power and supplies district heating. Statkraft is
a global company in energy market operations. Statkraft has 4,800 employees in
19 countries. www.statkraft.com
About SOWITEC
As one of the leading global project developers for renewable energies, SOWITEC
is active in 14 countries with a focus on the rapidly growing emerging and
developing countries. With almost 160 employees, SOWITEC covers all areas of
solar and wind power project development: from planning and conception, energy
and profitability calculations, through construction management, sales and
financing to the technical and commercial management of wind and solar parks.
More than 60 wind and solar projects with over 3,100 MW developed by SOWITEC are
currently in operation or under construction in eight countries, while
additional 2,000 MW have been sold to final investors and are currently under
final structuring. www.sowitec.com