Norway grants €100 million for clean hydrogen

Publish date: December 17, 2021

Clean hydrogen got a 100 million EUR boost by Norway’s climate funding body Enova today. Three projects will benefit from the funding decision, which is significant because of its technology diversity.

The Horisont Energi (€47 million grant) and Yara (€27 million) projects will showcase hydrogen production from natural gas with CCS and water electrolysis, respectively.

-We will need both methods to rapidly scale up low-carbon hydrogen production. We also need much more renewables, said Olav Øye, adviser for climate and industry at the Bellona Foundation.


Hydrogen replaces coal

Tizir Titanium and Iron (€25 million) will use hydrogen to replace coal in the production of titanium dioxide slag and iron.

-Bellona has followed this project from its inception, and is pleased to see the idea turn into reality. Such new process technology requires funding support, since business-as-usual is still cheaper than mitigation, said Øye.

Bellona’s partner Horisont Energi will produce low-carbon hydrogen and ammonia by reforming natural gas with CO2 capture and offshore geological storage. Equinor and Vår Energi are partners in the project.

olav_portrett_blackwhite Olav Øye, Advisor for Climate and Industry at the Bellona Foundation

CO2 storage for ammonia and Carbon Dioxide Removal

CO2 storage will also be be needed to fulfil the European Commission’s plans for Carbon Dioxide Removal.

-CCS is no silver bullet. But it certainly qualifies as a Swiss army knife, said Øye.

Horisont Energy is part of a Bellona-led consortium that advocates a Norwegian framework and target for removing CO2 from the atmosphere.

-Climate minister Espen Barth Eide and his colleagues in government have the means to make it happen: biomass at e.g waste-to-energy plants, CO2 capture tech providers, and geological storage offshore, said Eivind Berstad, adviser at the Bellona Foundation.

More funding needed

It will be obvious to many that today’s decision will not fund full-scale up of the hydrogen projects. Much more climate funding is required to put Norway on track to meet the Norwegian government’s ambition of 55% of emissions reductions by 2030. The grant announced today already makes up about 1/3 of Enova’s annual budget.


Read Bellona’s reaction to the European Commmission’s policy proposals for Carbon Dioxide Removal here.