Hafslund enters long-term power agreement with SkiGA for green ammonia production

Hafslund has entered into a power purchase agreement (PPA) with a duration of 15 years with SkiGA to produce green ammonia in Skipavika, Gulen municipality. The contract secures the majority of the renewable energy required for large-scale production of emission-free ammonia.

The agreement covers the delivery of up to 130 MW of renewable, emission-free power documented with Guarantees of Origin that will provide up to 100,000 tons of green ammonia per year and an annual base load volume of up to 1.1 TWh. The power will be delivered in price area NO5.

- Green ammonia is a prerequisite for the green transition and reduction in greenhouse gas emissions. The agreement with Hafslund gives the project access to renewable power at competitive prices providing crucial predictability for the production of green ammonia and the creation of new jobs in Skipavika, says Cornel Russi, CEO of SkiGA.

SkiGA is a project managed by Fuella AS, a development company focusing on green ammonia.

- A central part of Hafslund’s strategy is to be a partner and supporter of green industrial development. Green ammonia is a central solution in the transition to a decarbonized and emission-free society. This contract is an important contribution to this, and can also provide for new industrial consumption in a price area where Hafslund has a lot of renewable power production, says Kristin Lian, CEO of Hafslund Eco Vannkraft AS.

SkiGA is planned to start operation in 2027. The power supply is conditional on the final investment decision for the ammonia project.