ATOME Energy has today (April 4) announced its 75% owned subsidiary Green Fuel ehf has entered into a tranche of agreements to develop its Icelandic hydrogen and ammonia production project.
Under a non-binding term sheet, renewable energy company HS Orka will supply Green Fuel with up to 40MW of geothermal and hydroelectric power with the intention to enter into a binding power purchase agreement (PPA) before the end of the year (2023).
Set to supply Green Fuel’s green ammonia facility, planned to be one of the earliest large-scale green ammonia projects in Europe at time of start-up, electricity is expected to be available for start of operations, scheduled in 2026.
Additionally, Green Fuel also signed a Letter of Intent (LoI) with ON Power for the supply of renewable power, expected to be available from 2027.
ATOME has said Green Fuel’s products have the potential to decarbonise the maritime sector and has signed a Memorandum of Understanding (MoU) with fishing firm Samherij, to collaborate on the development of ammonia-powered fishing vessels.
The company has said the project’s strategic location presents strong export opportunities to the EU as demand grows for the decarbonisation of the bloc’s energy-intensive industrial sectors.
Last week (March 30), the European Council and Parliament provisionally agreed on new targets under the renewable energy directive (RED), which would see industry source at least 42% of its hydrogen from renewable fuels of non-biological origin (RFNBOs) by 2030.
“We are delighted to have achieved this important milestone on our journey towards providing sustainable, carbon-free fuel for the shipping industry,” said Siggi Olason, CEO of Green Fuel ehf. “It has been a pleasure working with HS Orka and Samherji, who share our commitment to tackling the climate challenge with determination.”
Olason added, “We believe that international and regional regulations will be key in driving the adoption of green ammonia as a fuel to reduce carbon and sulphur emissions from shipping.”
Tómas Már Sigurõsson, CEO of HS Orka, commented, “Climate change is high on our agenda, and we recognise the importance of this project for the decarbonisation of the shipping industry and the increasing demand for green ammonia to be used in fuels. We look forward to working alongside Green Fuel to ensure a sustainable future for Iceland.”
In an exclusive interview with H2 View last July (2022), Olivier Mussat, CEO of ATOME, explained that the company was bridging the gap between hydrogen production and the market requirement for hydrogen on a larger scale.
“The market for ammonia exists today, it is second most produced chemical in the world, and on its way to be a real global commodity, as its uses will go beyond just fertiliser and chemical but will see it grow to transport, energy and as well used as a hydrogen carrier. Ammonia allows us to prime the future hydrogen market,” Mussat said.
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