Aker Horizons and Statkraft partner on renewable hydrogen, ammonia in India, Brazil

Norwegian companies Aker Horizons and Statkraft are to collaborate on renewable hydrogen and ammonia production in India and Brazil, with a focus on the steel and fertilizer industries in each country, the companies said in a statement April 26.

In India, the two companies are targeting integrated renewable power generation and hydrogen production for use in the domestic steel industry, as well as ammonia for local use and export.

In Brazil, they plan to partner with wind and solar developer Sowitec to develop green hydrogen and ammonia projects in Bahia state, with a first fertilizer sector project scheduled to start commercial operations by 2027.

"With considerable renewable energy production and market activities in India and Brazil, Statkraft is well positioned to capture green hydrogen opportunities in these two huge and important energy markets," the company's Executive Vice President for International Power, Juergen Tzschoppe, said in the statement.

Aker's Clean Hydrogen division has experience across hydrogen, ammonia and methanol production, while Statkraft will provide its renewable energy production expertise.

Steel and ammonia account for around 9% of global greenhouse gas emissions, the companies said.

India produces around 100 million mt/year of steel, while the country's hydrogen consumption is around 7 million mt/year. This could reach 12 million mt/year by 2030, the companies said.

Ammonia prices have surged in recent months, spurred by rising gas prices and Russia's invasion of Ukraine. Delivered prices in Northwest Europe were assessed at $1,490/mt on April 25, according to Platts assessments by S&P Global Commodity Insights, down from a peak of over $1,600/mt at the end of March, but almost double the level in October.

Renewable hydrogen can replace fossil fuel-based hydrogen, coal and gas in steel and ammonia production.

"Replacing imported grey ammonia with locally-produced green ammonia will support the decarbonization of the local agricultural industry and reduces import dependency, while creating new green industrial opportunities," the companies said.

Brazil accounts for around 8% of global fertilizer demand, and imports over 80% of its consumption, the companies said.

"Both India and Brazil are large consumers of hydrogen, have supportive governmental policies and benefit from world-class renewable energy resources, which offers significant opportunities for green hydrogen and ammonia production." Aker Clean Hydrogen CEO Knut Nyborg said.

Aker Clean Hydrogen is targeting 5 GW of installed hydrogen production capacity by 2030.

Explore the Platts Hydrogen Price Wall on our Atlas of Energy Transition™.