Iverson eFuels is developing large-scale green ammonia production in Sauda. This initiative will help Norway achieve its goal of carbon neutrality by 2050. We will utilise renewable hydropower energy and approximately 300 MW of electrolysis capacity to produce over 200,000 tons of green ammonia annually. The plant is scheduled to begin production in 2029.
We have compiled frequently asked questions related to the project. We hope you find the answers you're looking for.
About the project and Iverson eFuels
Is the project just an idea, or will it actually be realised?
Iverson eFuels has a highly skilled project team working to realise the project according to our project plan.
Who owns Iverson eFuels AS?
Iverson eFuels AS is owned by Hy2gen and Copenhagen Infrastructure Partners (CIP). Hy2gen specialises in developing, constructing, and operating green hydrogen production and is developing renewable projects in Canada, France, the USA, Norway, and Germany. CIP invests in energy infrastructure and is one of the largest global fund managers in the renewable energy sector.
Why should foreign owners use Norway's resources for value creation?
Many of the major cornerstone companies in Norwegian municipalities have foreign owners. These companies play a significant role in job creation and local value generation, much like what we see in Sauda today. Both Norwegian and foreign investors committed to supporting local industries and creating jobs play an important role in improving the quality of life in local communities.
What is the expected timeline for the project?
The project is currently under development with Front-End Engineering Design (FEED) until 2025, followed by an investment decision in 2026, a construction phase from 2027 to 2029, with production expected to start in 2029.
Why is the facility being built in Birkeland?
The facility's location aligns with the municipality's and county's plans and strategy for green transition. Sauda Municipality has suggested Birkeland as a suitable site for the project.
Will there be any changes to land use if Iverson is not realised?
The Birkeland industrial area is currently designated for industrial use and will remain so, even if Iverson is not realised.
About Ammonia
What is ammonia?
Ammonia (NH₃) is the second most produced chemical in the world. Thousands of tons of ammonia are produced and transported daily worldwide.
What makes ammonia "green"?
Green ammonia is produced using renewable energy sources such as wind, solar, or hydropower. When ammonia is produced using renewable energy, it is emission-free.
How is green ammonia produced?
Green ammonia is produced by combining green hydrogen, generated through the electrolysis of water using renewable energy, with nitrogen from the air via the Haber-Bosch process.
Why green ammonia?
- Ammonia consists of nitrogen and hydrogen, the most available resources on Earth.
- Ammonia has a higher energy density than other hydrogen derivatives, such as liquid and compressed hydrogen.
- Green ammonia is identified as a highly suitable fuel for achieving zero-emission shipping.
How is green ammonia used?
Green ammonia can play a key role in sectors that contribute significantly to climate emissions and are difficult to electrify directly.
- Ammonia is essential for the production of synthetic fertilisers.
- Ammonia has excellent heat-absorbing properties and is used in cooling and freezing systems.
- Ammonia is a central component in many household and industrial cleaning products.
- Green ammonia can be used as fuel for ships, helping to reduce emissions from large vessels that operate over long distances. We aim to contribute to significant emission reductions in the Norwegian shipping fleet and are in close dialogue with shipowners and the maritime supply industry.
How is the development of the green ammonia value chain for shipping fuel progressing?
Ammonia has been designated as a highly relevant zero-emission fuel for ships that cannot be electrified with batteries. Major engine manufacturers have invested hundreds of millions in developing ammonia engines, as Wärtsilä communicated at the Green Café on April 3, 2024. Several shipping companies, including Höegh Autoliners, already have ammonia ships under construction.
Safety is our highest priority
Our top priority is the safety of people and the environment. We collaborate closely with Sauda Municipality and other regulatory authorities (Norwegian Maritime Authority, Norwegian Environment Agency, Directorate for Civil Protection and Emergency Planning, Norwegian Water Resources and Energy Directorate, Norwegian Coastal Administration, and Civil Aviation Authority) to ensure that all necessary safety procedures are in place and adhered to.
Ammonia is a common substance with various industrial and commercial applications worldwide.
Modern ammonia production incorporates advanced safety systems, close monitoring of production processes, strict maintenance procedures, and comprehensive personnel training, ensuring safe production.
The Birkeland plant will hold only minimal levels of ammonia at all times as it is continuously transferred to a storage tank in Sønnåhavn. This tank is designed with double steel walls and reinforced concrete encasement, ensuring safety and stability. Additionally, ammonia is stored without pressure, further minimising risk.
Will the ammonia plant have safety zones around its operations?
Yes, all businesses that produce hazardous substances must conduct risk assessments and establish safety zones around their operations. The established safety zones are preliminary; we expect these to be reduced.
Here are the overarching principles from DSB regarding what types of operations are permitted in different risk zones:
Is ammonia explosive?
No, ammonia is not explosive and is difficult to ignite.
What is the worst-case scenario?
In collaboration with independent third parties, we have conducted extensive analyses simulating various leak scenarios, their locations, and potential impacts. These analyses guide the plant's design to eliminate the likelihood of undesirable events. There is no reason to be concerned about leaks at the plant. This is highly unlikely with modern technology, safety protocols, and monitoring procedures.
How will Sauda residents be informed in the event of incidents?
The plant will operate under a crisis plan approved by DSB and Sauda Municipality. This plan will include detailed notification procedures and necessary measures in case of undesirable events to ensure a rapid and effective response.
Is there any risk of employees being exposed to hazardous materials at work?
Any industry handling hazardous materials faces a potential risk of employee exposure. We will minimise this risk through continuous monitoring of ammonia levels, thorough employee training, and the use of personal protective equipment.
Our facility will be designed with comprehensive safety systems, including leak detection systems, protective equipment, and emergency protocols. Employees will be trained to handle materials safely and respond to incidents. Regulatory bodies set strict safety frameworks and clear exposure limits. We must comply with these standards and conduct regular risk assessments to ensure a safe working environment for our employees.
How do you ensure that ammonia production in Norway is safe and efficient?
Norway has extensive experience with ammonia production, and we use this knowledge and modern production technologies. We utilise our expertise and external advisors from recognised industry and research experts.
Can the ammonia tank be placed inside the mountain?
We have investigated the possibility of placing the ammonia tank inside the mountain. This would require blasting a large cavity deeper into the mountain. However, the Norwegian Geotechnical Institute (NGI), a leading industry expert, advises against this solution. NGI's analysis identifies zones of weakness and fractures in the mountain, making it unsuitable for safely housing a storage tank. Additionally, there is a significant risk that the blasting work required to create this cavity could cause damage to the Saudafaldene power plant, which has extensive infrastructure in this mountain.
Environmental impact
Will the location of the facility affect agriculture in the area?
Our location near agricultural land will not impact farming activities in the area. According to DSB's requirements for consideration zones, agriculture is one of the industries that can be located close to such a facility.
Will there be noise from the plant?
There will be no internal noise for operators or external noise from the plant exceeding the standards set by the Ministry of Climate and Environment. Noise levels are regulated by national standards.
Will there be any odours from the plant?
There will be no odours from the facility.
How will the ammonia plant manage water consumption and ensure it does not contaminate drinking water in Sauda?
To obtain permission to produce ammonia, the plant must comply with various requirements, including regulations under the "Pollution Control Act" to prevent chemical runoff. In addition, it must be guaranteed that no emissions can reach Sauda's drinking water.
The plant will have a concrete surface to collect all rainwater that falls in the area, preventing it from flowing away without undergoing a controlled purification process. The current design with a water-cooling system uses less than 8% of river flow, which is within national recommendations. Collaboration with Saudafaldene will also ensure proper water management. Water consumption will be adjusted according to the cooling system's design.
What will happen to the cooling water?
We ensure that neither contaminated nor heated water is discharged into the river, thereby protecting local marine life from any impact. All cooling water used in our processes will evaporate in the cooling towers, preventing any environmental damage.
What kind of steam will be produced at the facility, and how will the cooling system be designed?
The steam will consist of condensed water from the cooling towers. Eramet has a similar cooling system. The cooling system's design will be optimised during the FEED studies, where we will develop water, air, and hybrid solutions.
How will the plant impact traffic?
Our facility will only contribute minimal additional traffic. The main traffic flow will primarily come from employees, in addition to a modest level of freight transport, similar to traffic at Eramet.
What about walking and cycling paths?
Iverson is willing to fund walking and cycling paths as outlined in a development agreement with Sauda Municipality.
Impact on the Sauda High School (Sauda SVG)
Will the project affect Sauda SVG?
According to the latest analysis, Sauda VGS is outside the safety zones and will not have to move.
Relocation
Who decides where my business will be relocated and when and how will it happen?
All businesses at Birkeland that must relocate as a consequence of the establishment of the ammonia plant have now received replacement sites. All costs related to relocation and establishment in a new area will be covered, and they will be able to utilise new buildings that meet updated standards. Iverson has met with all businesses and aims to maintain open and close communication.
What costs will Iverson cover for my business during relocation?
Iverson will cover all costs directly related to the business's relocation and will strive to have new premises ready before the relocation occurs. This is to ensure minimal operational disruption for the affected businesses. Covered costs include expenses for new land, relocation/new building, registration, documented costs for lost profits due to disruptions during the move, and any groundworks.
What support for legal assistance can businesses receive?
Businesses have been granted 10 hours of legal assistance to clarify their option agreements and their potential implications. This will also include a neutral legal assessment of each business's agreement.
Why can't Iverson relocate to Lonarholet so that businesses can remain where they are?
Even before Iverson established itself in Sauda, the Birkeland industrial area was identified by Sauda Municipality as highly suitable for energy-intensive industries. This area was already established with proximity to both water and electricity, and it was designated for industrial use. The feasibility study suggested that the location proposed by the municipality offers clear advantages.
Will replacement land with buildings be ready for use on the day the need for relocation arises?
In general, all businesses will have the opportunity to have replacement land and buildings ready by the relocation day.
Will Iverson cover the difference in costs for new standards if building regulations make this necessary for the new construction?
Yes, Iverson will cover the difference in costs if a higher standard is required according to building regulations. However, this must be a specific choice made by each individual actor, as it may affect tax regulations for each business.
How will compensation be assessed if a business wishes to close down its operations?
This will be appraised by a third-party commercial real estate agent approved in advance by the business in question. The individual will review business details, the area, and prospects and, based on this, appraise the business, land, and buildings. All of this will occur in consultation with the business in question.
Are businesses prevented from further developing their operations between signing option agreements and completing relocation?
No, businesses are free to continue developing their operations, but Iverson requests notification of this in advance so that any potential option agreements can be updated according to developments. This ensures that any changes are included in the current option agreement.
How does Iverson eFuels ensure good communication with the local community and affected parties?
Iverson eFuels is committed to maintaining close dialogue with all affected by our plans. We have informed local businesses in Birkeland and landowners. We also have a dedicated contact person in Sauda, Gunnar Gauthun, whom we encourage everyone to reach out to with any questions, big or small, related to our project. We also aim to reach the local community through transparency and good information on our website, social media, and other channels.
Jobs and value creation
How many people will work at the facility?
Approximately 50-60 people will be involved during the facility's operational phase. We also expect new jobs to be created among various subcontractors and related industries. A new value chain for ammonia as a ship fuel will be established, contributing to jobs among technology and equipment suppliers and logistics providers throughout the region.
We aim to create jobs at the plant while strengthening the local economy. We want to make Sauda and the region attractive for new talent.
How is circular economy incorporated into the design of the green ammonia plant?
As part of establishing Iverson eFuels at Birkeland, we are exploring opportunities to integrate circular economy principles into the project. This involves identifying potential circular synergies to enhance resource efficiency and minimize our environmental footprint.
Key opportunities under consideration include:
- Utilizing waste heat to support other industrial actors in the surrounding area
- Reusing oxygen from the electrolysis process, which could be applied in various industrial processes or aquaculture
- Repurposing existing buildings and materials at the Birkeland site
- Capturing and reusing CO₂, in collaboration with Eramet, to explore potential applications within carbon capture and storage (CCS)
Iverson eFuels aims to offer waste heat from the plant. However, this will depend on comprehensive technical, economic, and feasibility assessments to be conducted during the detailed planning phase. Any potential heat delivery will be developed at a later stage, with Sauda Energi serving as a key competence partner.
Electricity consumption
Will the establishment of the ammonia plant contribute to an increase in electricity prices?
All of society's electrification affects electricity prices: electric cars, electric ferry services, offshore platforms in the North Sea, and new green industries.
Regardless of electricity prices, it is wise to create value from Norwegian hydropower in Norway to maximise positive ripple effects and local job creation rather than solely exporting electricity.
Sauda lies in the NO2 price area, which has a significant power surplus and is the electricity area with the highest export share. Any new establishment in the NO2 area, whether in Sauda, southern Norway, or Jæren, will have the same potential impact on electricity prices for everyone in the NO2 area.
Hesthammer
How will ammonia be transported?
The green ammonia will be transported through a hidden pipeline running through the mountain from Birkeland to a storage facility at Hesthammer, east of Sauda Harbour. This storage tank features double steel walls and is encased in concrete. Ammonia will not be stored under pressure. We will then load the ammonia from the storage facility onto ammonia tankers onboard ships.
How will you transfer ammonia to ships, and how often will this operation occur?
We will not use a loading arm from the shore. This will be done by a floating transfer device, which will be transported out to the ship for bunkering. It does not have an arm but rather a hose connected to the ship's storage tanks. The entire operation can be completed in under 30 hours and will only occur once a month.
Communication
How do you communicate with the local community?
Open and effective communication with all stakeholders is important to us.
Green Café
At our Green Café, which is an open event, we update the community on the project's progress. Here, people can ask questions about the project and provide feedback. We also invite experts to present topics related to renewable energy, safety, and sustainability.
Local HUB Coordinator
Gunnar Gauthun, our HUB coordinator, is an important link between the project and the local community. You can find him in the Eramet office building (Birkelandsvegen 1, 4200 Sauda). His door is always open, and he is always ready for a chat over a cup of coffee.
Social Media Updates
Follow our social media channels (Facebook and LinkedIn) for updates on project developments, partnerships, events, and milestones. This is a great way to stay informed about what’s happening with us.
Local Media Engagement
We invite the media to share news from the project. Here you can find information about press contacts:
Kateryna Hunsbeth
Operations Manager
Email: k.hunsbeth@hy2gen.com
Phone: +47 942 62 888
Hege Økland
Managing Director
Email: h.okland@hy2gen.com
Phone: +47 957 53 695
Education Initiatives
We collaborate with local schools and educational institutions to help develop expertise in new energy carriers, sustainability, and related technologies. Our goal is to educate and inspire the next generation.
Feedback Channels
We welcome all questions, comments, or concerns. Please feel free to reach out via the contact page on our website.
Our Website
Our website contains information about the project.