After receiving government support, Luxcara and GreenH have made a final investment decision (FID) on a 20MW green hydrogen production facility in Bodø, Norway.
The Norwegian Ministry of Climate and Environment, through its state-owned enterprise Enova, granted NOK 129m ($11.4m) in funding support, which enabled the two companies to make the FID.
The Bodø Hydrogen Project, located at Langstranda, will have a 20MW electrolyser capacity in phase one and an annual production of up to 3,100 tonnes of green hydrogen. An additional 10MW could be introduced in phase two to increase production capacity to 4,800 tonnes per year.
The hydrogen produced will fuel the Vestfjorden ferry connection, operated by Torghatten Nord, which is now scheduled to begin operations in 2026 following a one-year delay. The hydrogen is expected to be bunkered onsite, with MAN Cryo contracted to design the bunkering systems.
“The Bodø project embodies all the key elements needed for a successful green hydrogen project,” claimed Halvor Nessen, the Investment Manager at Luxcara.
“A strong and committed joint team from Luxcara and GreenH, proximity to local demand like the ferry operator Torghatten Nord, as well as access to cheap baseload renewable power.”
Nessen also highlighted the additional value streams that green hydrogen projects can unlock by utilising byproducts of the electrolysis process, including residual heat and oxygen, increasing efficiency and the initiative for early success.
Morten Solberg Watle, CEO of GreenH, added, “We are now moving full speed ahead with the construction of the hydrogen facility on the site in Bodø. The facility will be the first of its kind in Northern Europe and thus mark an exciting new chapter in the European green hydrogen market.”
Luxcara is one of the leading asset managers and investors in renewable energy infrastructure and has brought its financial resources to Bodø, the second hydrogen production project in its portfolio. Meanwhile, GreenH will design and operate the production facility.
FIDs are growing but large-scale hydrogen projects lag: AECOM
Despite a dramatic increase in final investment decisions (FIDs) globally in 2024, large-scale production capacities are still yet to be seen, according to AECOM’s Toby Uppington.
The Senior Vice-President and Global Energy and Hydrogen Markets Lead claimed that although hydrogen projects are beginning to reach FID, they “aren’t going to get us to achieve existing Net Zero targets” any quicker.
The Hydrogen Council’s latest Hydrogen Insights report highlighted that the value of FID’d projects has grown from $10bn in 2020 to a total of $75bn
The total 1,572 projects account for 48 million tonnes per annum (mtpa) of clean hydrogen by 2030. However, committed projects make up just 4.6 mtpa.
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