Fortescue awarded €200million in European Union funding for Norway green ammonia project

The European Union (EU) has endorsed and chosen to significantly invest in Fortescue’s plans for a flagship green ammonia plant in Norway, awarding the Holmaneset Project a grant of €203,766,000 as part of its Innovation Fund. 

The Innovation Fund is one of the world's largest funding programmes for the demonstration and commercialisation of innovative low-carbon technologies, financed by revenues from the auctioning of allowances from the EU's Emissions Trading System. 

The Holmaneset Project will share in €3.6 billion being awarded to a series of innovative large-scale projects by the Innovation Fund.

The planned green ammonia plant, west of Svelgen, aims to capitalise on the surplus renewable energy from the Norwegian transmission grid and ship the resulting green ammonia to domestic and European markets.

Fortescue Energy CEO, Mark Hutchinson, said, “The Holmaneset Project is a great opportunity for Fortescue, Norway and Europe to develop a significant green energy value chain, and its selection for funding by the EU is a recognition of its significance to global decarbonisation efforts.”

“Fortescue is leading the way to a future beyond fossil fuels, and we commend the EU for its leadership in joining with us to help kickstart a green ammonia industry in Norway and Europe.”

The Holmaneset Project has been identified as a priority project by the Fortescue board, who recently approved an Early Investment Decision in the project to see it progress towards Front End Engineering Design (FEED) before being considered for a Final Investment Decision (FID).

Fortescue is currently targeting construction to commence in 2025, and operations in 2027, pending final approvals from the board.

Fortescue Norway Country Manager, Thor Magnus Rovik, said, “The Holmaneset Project is integral to creating a new green economy for Norway and Europe at scale. The green hydrogen and green ammonia produced near Svelgen has the potential to replace fossil fuels in industries that find it difficult to cut emissions, like long-haul transport, shipping and heavy industry.”

“This project will be important for Norway to achieve its ambitious targets to cut emissions and build sustainable industrial development, and those targets are crucial for overall emissions reductions across Europe.”

The EU Innovation Fund Grant will be paid on the completion of specified project milestones, with the first instalment to be paid on Financial Close.