Iverson eFuels is developing large-scale green ammonia production in Sauda, aiming to contribute to Norway's goal of carbon neutrality by 2050. Using renewable hydroelectric sources and approximately 300 MW electrolysis capacity, we plan to produce over 200,000 tons of green ammonia annually. The factory is set to be ready for production in 2029. Below are answers to frequently asked questions about the project.
About the project and Iverson eFuels
Is the project just an idea, or will it actually be realized?
Iverson e-Fuels aims to realise this project with a competent team working according to our project plan.
Who owns Iverson eFuels AS?
Hy2gen, CIP, and Trafigura own Iverson eFuels AS. Hy2gen specialises in green hydrogen production, CIP invests in energy infrastructure, and Trafigura is a leading independent trading company.
What is your view on foreign owners using Norway's resources for value creation that then leaves the country?
Many cornerstone companies in Norway, including Iverson eFuels, have foreign owners. These companies are significant for local employment and value creation, similar to the current situation in Sauda.
What is the expected timeline for the project?
The project is under development with FEED (Front-End Engineering Design) until 2025, followed by an investment decision in 2026, a construction phase from 2027 to 2029, with production start planned for 2029.
Why is the plant being built in Birkeland?
The location aligns with the municipality and county's plans for green transition. Sauda municipality proposed Birkeland as a suitable site for the project.
Will the purpose for the land change if Iverson is not realised?
The land at Birkeland Industrial Area is currently designated for commercial activities and will remain so even if Iverson is not realised.
About ammonia
What is ammonia?
Ammonia, with the chemical formula NH₃, is one of the most produced inorganic chemicals in the world.
What makes ammonia "green"?
Green ammonia is produced using renewable energy sources such as wind, solar, or hydropower.
How is green ammonia produced?
Green ammonia is made by combining green hydrogen, produced through the electrolysis of water using renewable energy, with nitrogen from the air using the Haber-Bosch process.
Why green ammonia?
- Ammonia (NH3) consists of nitrogen and hydrogen from air and water, the most abundant resources on Earth.
- It has a high energy density compared to other hydrogen derivatives like liquid hydrogen and compressed hydrogen.
- When produced using renewable energy, ammonia is emission-free.
- Green ammonia is seen as an excellent fuel for zero-emission shipping.
How is green ammonia used?
How is the development of the value chain for green ammonia as a fuel for shipping progressing?
Ammonia is considered a highly relevant zero-emission fuel for ships that cannot be electrified with batteries. Major engine manufacturers have invested significantly in developing ammonia engines. Several shipping companies, including Höegh Autoliners, have ammonia ships under construction.
Safety as our top priority
What safety measures are in place for the ammonia plant?
Our top priority is the safety of people and the environment. We understand and manage the risks associated with ammonia. We work closely with Sauda municipality and other regulatory authorities (Norwegian Maritime Authority, Environment Agency, Directorate for Civil Protection and Emergency Planning, Norwegian Water Resources and Energy Directorate, Coastal Administration, Civil Aviation Authority) to ensure that all necessary safety procedures are in place and maintained.
Modern ammonia production processes include advanced safety systems that reduce the risk of ammonia leaks. This involves close monitoring of production processes, strict maintenance procedures, and comprehensive training for personnel.
Although ammonia is toxic, it is a common substance used in various industrial and commercial applications worldwide.
There will be minimal ammonia at the Birkeland plant at any given time, as it will be continuously transferred to a storage tank in Sønnåhavn. This double-walled, concrete tank does not store ammonia under pressure.
Will the ammonia plant have safety zones around its operations?
There are spatial limitations around facilities that produce hazardous substances. Based on a completed Qualitative Risk Assessment (QRA), indicative safety zones around the plant and pipeline have been identified. These have been evaluated against the acceptance criteria described in DSB’s guidelines for major accident facilities. The calculations made in the QRA at this stage have large safety margins, and we expect the final safety zone for the approved facility to be significantly smaller. It is important to note that these safety zones and their boundaries have not yet taken into account mitigating measures that could be implemented in later project phases to reduce the extent of these safety zones. Therefore, we emphasize that the indicated safety zones may be reduced during the course of the project.
In connection with the design and further approval of the facility by DSB, a new and more detailed QRA will be performed. The risk contours will have a different configuration than what is currently defined for the inner, middle, and outer zones.
Here are DSB's overarching principles for the types of activities allowed in the various risk zones:
Is ammonia explosive?
Unlike hydrogen, ammonia is not explosive and is difficult to ignite.
What is the worst-case scenario?
In the unlikely event of the worst-case scenario, a leak is considered the most critical incident. We have performed extensive analyses in collaboration with independent third parties to simulate different types of leaks and their potential impacts. Preventive measures are included in the plant's design to minimise the likelihood and consequences of such incidents.
How will Sauda residents be informed in case of incidents?
The plant will operate with a crisis plan approved by DSB and Sauda municipality. The plan includes detailed notification procedures and necessary actions in case of incidents to ensure a quick and effective response. Evacuation plans will be developed later in collaboration with the local fire department.
Is there a risk of employees being exposed to hazardous materials at work?
We ensure that our team has the necessary competence, training, and safety equipment to maintain a safe and healthy work environment. Iverson follows a strict zero-injury policy and will implement all necessary safety procedures to guarantee employee safety.
How do you ensure safe and efficient ammonia production in Norway?
Norway has extensive experience with ammonia production. We use modern production technologies and expertise, involving both in-house and external advisors from reputable industry and research environments.
Environment
Will the location of the plant affect agriculture in the area?
Our location near agricultural land will not impact farming activities. According to DSB requirements, agriculture can be close to such a factory.
Will there be noise from the plant?
Noise levels are regulated by national standards. There will be no internal noise for operators or external noise from the factory that exceeds the standards set by the Ministry of Climate and Environment.
Will there be any odour from the plant?
Under normal operation, there will be no odour from the facility.
How will the ammonia plant manage water usage and ensure it does not pollute Sauda's drinking water?
The ammonia factory must comply with several requirements to obtain a production permit, including those regulated by the "Pollution Control Act" to prevent chemical runoff. To receive the production permit, it must be ensured that no emissions can reach the drinking water in Sauda.
The factory will have a concrete surface to collect all rainwater that falls on the area, ensuring that contaminated water cannot escape without undergoing a controlled purification process. The current design, which includes a water cooling system, uses less than 8% of the river flow, which is acceptable according to national recommendations. Collaboration with Saudafaldene will also ensure proper water management. Water consumption will be adjusted according to the design of the cooling system.
What will happen with the cooling water?
We ensure that neither contaminated nor heated water is released into the river, protecting local marine life. All cooling water used in our processes will evaporate in cooling towers, preventing any environmental damage.
What kind of steam will be produced at the plant, and how will the cooling system be designed?
The steam will be condensed water from the cooling towers. Eramet has a similar cooling system. The design of the cooling system will be optimized during the FEED studies, where we will develop water, air, and hybrid solutions.
How will the plant affect traffic?
The plant is expected to contribute minimal additional traffic, primarily from employees, with a modest level of goods transport similar to Eramet.
What about pedestrian and bicycle paths?
We will meet the requirements set for us to address the area's infrastructure needs. We are collaborating with local authorities and the community to ensure that we provide safe and environmentally friendly travel options for our employees and residents.
Iverson has agreed to fund the construction of pedestrian and bicycle paths as needed. This will be linked to a development agreement between Iverson and Sauda Municipality.
How are archaeological surveys handled concerning sheep grazing areas?
At the landowners' request, we have moved the date for archaeological surveys to late July/early August to ensure sheep grazing before they are sent to summer pastures. This decision accommodates the landowners' wishes to ensure the progress of the project and animal welfare.
What happens if archaeological surveys uncover finds on my property?
School
Will Sauda High School be affected by the project?
Early indications from third-party analyses and safety assessments show that Sauda High School is outside any potential safety zone and will not be affected. The Rogaland County Council has confirmed (June 2024) that the high school will remain in Sauda regardless of Iverson's plans.
Relocation
Who decides where my business will be moved and when and how will it happen?
The companies, in consultation with Iverson, will decide where, when, and how the relocation will take place. This will involve discussions with the companies, which, after this review, can find a suitable location for the business that causes the least disruption to nature.
What happens if I don't want to move?
The outcome for businesses that do not wish to move is not yet specified, as we aim to reach an agreement. Expropriation is an option Iverson wants to avoid.
What costs will Iverson cover for my business if relocation occurs?
Iverson will cover all costs directly related to the relocation of the business and will strive to have new premises ready before the move takes place. This is to ensure minimal downtime for the affected businesses. The costs covered include expenses for a new plot, moving/new building, registration, documented costs for lost earnings due to downtime during the move, water and sewage, and any groundwork.
What legal assistance support is available to businesses?
Businesses have been granted 10 hours of legal assistance to understand their option agreement and its potential implications, including a neutral legal review of the agreement for each business.
Why can't Iverson move to Lonarholet so businesses can stay where they are?
Will replacement areas with buildings be ready for use when the need to move arises?
This will be discussed in one-on-one conversations with each business. Generally, all businesses should have the option to prepare replacement areas and buildings by the moving date.
Will Iverson cover the difference in cost if a new standard is required due to building regulations for new construction?
Yes, Iverson will cover the cost difference for a higher standard per building regulations, but this must be a specific choice by each business as it may affect their tax rules.
How will compensation be valued if a business wishes to close?
This will be appraised by a third-party commercial real estate agent, pre-approved by the business in question. The agent will review the business details, the area, and prospects and, based on this, appraise the business, the area, and the buildings. Everything will be done in consultation with the business in question.
Are businesses prevented from developing their operations between signing option agreements and relocation?
No, businesses are free to develop their operations further, but Iverson requests prior notification so that the option agreement can be updated accordingly. 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?
Jobs and value creation
How many people will work at the plant?
Power consumption
Will establishing the ammonia plant increase electricity prices?
All electrification of society affects electricity prices—electric cars, electric ferry routes, electrification of platforms in the North Sea, and new green industries.
Regardless of electricity prices, it is wise to create value from Norwegian hydropower in Norway so that we reap the most benefits in the form of positive ripple effects and local jobs rather than exporting pure electricity.
Sauda is located in the NO2 price area, which has a significant power surplus and is the area with the highest export share. Any new establishment in the NO2 area, whether in Sauda, Sørlandet, or Jæren, will have the same potential impact on electricity prices for everyone in the entire NO2 area.
Hesthammer
How will ammonia be transported?
The green ammonia is planned to be transported through a concealed pipeline through the mountain from Birkeland to a storage facility at Hesthammer, east of Sauda harbor. This storage tank is double-walled and clad in concrete. The ammonia will not be stored under pressure. We then plan to load the ammonia from the storage facility into ammonia tanks on board ships.
How will you transfer ammonia to ships, and how often will this operation take place?
We will not use a loading arm from the shore. The transfer device is floating and will be transported to the ship for bunkering. It does not have an arm but uses a hose that connects to the ship's storage tanks. This entire operation is estimated to take less than 30 hours and will occur only once a month.
Communication
How do you communicate with the local community?
We value open and good communication with all stakeholders.
Green Café
At our Green Café, an open event, we update the local community on the project's progress, answer questions, and gather feedback. We also invite experts to present topics related to renewable energy, safety, and sustainability.
Local HUB Coordinator
Gunnar Gauthun, our HUB coordinator, acts as a key link between the project and the local community. He is located at 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 the project's development, partnerships, events, and milestones. This is a great way to stay informed about our activities.
Local media engagement
We invite the media to share news about the project. Here are the 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
Educational initiatives
We collaborate with local schools and educational institutions to develop skills in new energy carriers, sustainability, and related technologies, aiming to educate and inspire the next generation.
Feedback channels
We welcome all questions, comments, or concerns. Feel free to contact us via the contact form on our contact page.
Our website
Our website contains information about the project.