Ammonia company in Greater Bergen gets NOK 1 billion in EU funding

Fuella was one of seven European companies awarded a total of EUR 720 million to renewable hydrogen projects. They were selected through the first competitive bidding process under the European Hydrogen Bank in competition with 132 projects. Fuella was the only Norwegian project in the winning heat for the funds, that will support a scale-up of cleaner fuels.

Avoiding 10 million tonnes of CO2 emissions.

The renewable hydrogen they produce will be used in helping the marine sector to reach their zero-emission goals but will also be utilized in sectors such as steel, chemicals, and fertilisers.

Together, the winning bidders plan to produce 1.58 million tonnes of renewable hydrogen over ten years, avoiding more than 10 million tonnes of CO2 emissions.

The funds for this auction come from the revenues of the EU Emissions Trading System. The winning bidders will produce renewable hydrogen in Europe and will receive a subsidy to bridge the price difference between their production costs and the market price for hydrogen, which is currently driven by non-renewable producers.

The 7 selected projects were the winners of an oversubscribed auction which attracted 132 bids in total.

Open for production in 2026

The facility in Skipavika in Greater Bergen is currently being built by Casale and is developed by FUELLA in partnership with Skipavik Næringspark. The production is scheduled to start in 2026.

The project will produce up to 100,000 tons of green ammonia per year, using only renewable resources, such as wind and hydro power, as well as air and water in order to replace fossil fuel-based ammonia and reduce carbon emissions.

Next Steps

The seven selected projects will now start preparing their individual grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA).

Selected projects will have to start producing renewable hydrogen within a maximum of 5 years after signing the grant agreement. They will receive the awarded fixed premium subsidy for up to 10 years for certified and verified renewable hydrogen production, according to a press release.

The Commission plans to launch a second European Hydrogen Bank auction by the end of this year. It will draw on the lessons learned from this pilot auction and also further consult stakeholders before launching the next auction.