Yara finds partners for Norway green ammonia project

Major fertilizer producer Yara has signed a letter of intent with Norwegian state-owned utility Statkraft and investment firm Aker Horizons regarding the production of green ammonia in Porsgrunn, Norway.

Yara in December 2020 announced plans to electrify its plant at Porsgrunn and produce 500,000 t/yr of green ammonia, saying that it was searching for partners and government support.

Yara said today that it and its new partners will target opportunities around green hydrogen and green ammonia within shipping, agriculture and industrial applications.

Alongside the Porsgrunn project in the south of the country, the three companies plan to explore the potential for future production of green ammonia in the northern Norway region.

The Porsgrunn project could be operational in 5-7 years, provided that power is available at the site and the required public co-funding is in place, Yara said.

Partnering with Statkraft and Aker provides Yara with "key expertise within renewable electricity, power markets, industrial development and project execution", said the Norwegian fertilizer producer's president and chief executive Svein Tore Holsether.

The electrification and decarbonisation of the plant has the potential to become one of the largest climate-focused initiatives in Norway's industrial history, Yara said. It could reduce annual CO2 emissions by the amount that is produced by more than 300,000 fossil-fuel passenger cars.

The Yara Clean Ammonia business unit was recently created as the company furthered its push towards environmentally-focused operations.

By David Maher