The award from ENOVA paves the way for the green shift at sea through access to green
hydrogen, at prices that make the energy transition possible. With this, HYDS is helping to
facilitate zero-emission fuel at important hubs for aquaculture and short sea shipping
along the Norwegian coast.
HYDS has today been awarded a total of NOK 386 million (respectively NOK 180 million and NOK 206 million) for the projects HyFuel (Florø) and Kaupanes Expansion Project (Egersund), through Enova’s allocation program for green energy transition in the maritime sector, Hydrogen production for maritime transport 2027.
Enova’s support for the two projects applied for represents a milestone for HYDS (Hydrogen Solutions AS), now facing an important upscaling of proven technology and production modules.
– I am incredibly proud of the team that has worked together on these applications, and we are ready for an expansion of Kaupane’s Hydrogen and a realization of the HyFuel production facility. The good cooperation between the owners in both projects will now be continued, led by HYDS, through the planning, construction and operation phase, says Thor Henrik W. Hagen, CEO of HYDS.
Continuation of valuable experience makes it possible to scale up
HYDS is dedicated to using the experience gained from building and operating its existing green hydrogen production facilities that have been in operation since 2023 (Stord Hydrogen) and 2024 (Kaupanes Hydrogen). The company focuses on streamlining and standardising 10MW and 20MW technology modules, which can be scaled and provide synergies between Hyfuel and Kaupanes. This will be an important contribution to Norwegian maritime technology development, which has a great need for the proven and feasible solutions for the green shift at sea.
– Going forward, HYDS will use proven, available technologies with seamless design integration, and aims to contribute to accelerating the maritime sector’s transition towards sustainable zero-emission solutions that are both technically innovative, safe and operationally feasible. We are ready and look forward to putting the plants into production, says Thor Henrik W. Hagen.
Maritime decarbonisation
As the maritime hydrogen projects have taken longer to realize than expected, HYDS has gained experience from developing and servicing other market segments such as industry, construction and mobility. This has provided valuable insight that now fits very well with the company’s opportunity to increase its focus on maritime decarbonisation solutions.
– Green hydrogen is a proven and feasible solution for several maritime transport segments and shows a clear path to zero-emission operations that build on our national maritime strengths. We are proud that the two hydrogen production hubs in which we are involved were selected in this award. These two hubs will serve the maritime segments, provide flexibility in the network, and be able to serve other market segments. We look forward to offering an energy carrier that can contribute to the maritime sector intensifying its work towards a sustainable future, says Thor Henrik W. Hagen.
HYDS was founded on and has its head office on the island of Stord, close to maritime coastal culture and
industry:
– We would like to thank Enova for the award which helps to build up the hydrogen value chain, supporting both customers and producers. With this award, we and our project partners in Hyfuel and Kaupanes Hydrogen are happy to be involved in driving the green shift in the maritime industry. HYDS was founded on the island of Stord, which is central to Norway’s maritime industry, and the maritime industry is therefore close to our hearts. The local anchoring and the maritime focus have been central for all the strategic owners in HyFuel (Sogn og Fjordane Energi and Fjordbase) and Kaupanes Hydrogen (Dalane Energi and Eigersund Næring og Havn KF), Thor Henrik W. Hagen concludes.
ABOUT HYDS – HYDROGEN SOUTIONS
Hydrogen Solution AS (HYDS) is a rapidly growing Norwegian hydrogen company, established in 2021 and headquartered in Leirvik in Stord, south of Bergen, Norway. HYDS develops environmentally friendly energy solutions for various industries by offering green hydrogen, produced through electrolysis and electrical power obtained mainly from renewable sources.
HYDS develops, builds, owns and operates hydrogen facilities, and produces green hydrogen and hydrogen derivatives through scalable and local facilities. HYDS is part owner and operator of two production facilities for compressed RFNBO hydrogen*: Stord Hydrogen AS (75% ownership), opened May 2023, and Kaupanes Hydrogen (48.39% ownership), opened February 2024.
The current owners of Hydrogen Solutions are Sunnhordland Kraftlag and Dalane Energi, local energy companies with a background in Norwegian hydropower, experienced entrepreneurs from the energy and gas industry and employees
Key figures:
- Established 2021
- Headquarter at Leirvik, Stord
- 29 employees, located in Leirvik, Arendal, Bergen og Skudneshavn
- Turnover NOK 32,379,327 (2023)
- Owned by Sunnhordland Kraftlag (45%), Dalane Energi (10%) and private investors (45%)
*Renewable Energy Directive v/EU defined methodology for renewable fuel of non-biological origin: Defines under which conditions hydrogen, hydrogen-based fuel or other energy carriers can be considered as renewable fuel of non-biological origin (RFNBO). (Source: energy.ec.europa/renewable hydrogen).
ABOUT THE PROJECT HYFUEL
HyFuel AS (HF) was established in 2020 by Fjord Base Holding AS (FBH), Sogn og Fjordane Energi AS (SFE) and Gasnor AS with a 33.3% stake each. In 2024, Hydrogen Solutions AS (HYDS) bought Gasnor’s share in HF. HyFuel is planning a 20 MW hydrogen plant centrally located at Fjord Base in Florø. With the base’s annual handling of over 2,000 ship calls and over 400 kilotonnes of cargo over the quay, the potential for local production and distribution of hydrogen from HyFuel to the maritime industry is very favorable. In the report “Scenario analysis of infrastructure needs for alternative fuel for vessels in the maritime sector”, the location is highlighted as one of the most central geographical locations in Norway for the distribution of maritime zero-emission fuel. The report has been prepared on behalf of Enova, NVE and the Norwegian Coastal Administration.
Amount of grant applied for NOK 180,000,000.
Key figures:
- Established 2020.
- Owned by HYDS 50.5%, Sogn og Fjordane Energi 33.5% and Fjord Base Holding 16%.
4 HYDROGEN SOLUTIONS AS | hydrogensolutions.no | PO Box 24, 5401 Stord, NO-NORWAY | Vat/Org. number: 926 872 052
For further information about HyFuel, please refer to the website: https://www.hyfuel.no.
ABOUT THE PROJECT KAUPANES EXPANSION PROJECT
Kaupanes Hydrogen AS (KH) is a producer of renewable hydrogen, located on Eigerøya in Eigersund municipality. KH currently has a production plant for hydrogen in operation with an electrolysis capacity of 1 MW. Today’s 1 MW facility is owned by Dalane Energi and operated by Hydrogen Solution through Kaupanes Hydrogen. The plant currently supplies compressed green hydrogen with fuel cell quality to the Norwegian market. The plant has been in operation since February 2024. It is applied for grant for a 20 MW expansion of the already existing 1 MW facility for RFNBO hydrogen, Kaupanes Hydrogen AS (KH). The project will bear the name Kaupanes Expansion Project (KEP). Kaupanes Hydrogen is centrally
ocated at Eigersund Harbour, which is the first and last anchorage point for ships between Norway and Europe along the Westland coast. At the same time, this port is one of Norway’s largest fishing ports with over 9,000 qualified vessel passages a year.
Amount of grant applied for NOK 206 000 000.
Key figures:
- Established 2023.
- Plant in operation from February 2024.
- HYDS – Hydrogen Solutions AS acts as operating operator of the facility. No employees.
- Remotely controlled operation 24/7 through Sunnhordaland Kraftlag AS’s operations centre.
- Kaupanes Expansion Project is owned by HYDS 48 %, Dalane Hydrogen 48 % and Eigersund Næring og Havn KF 3 %.
For further information about Kaupanes Hydrogen, please refer to the website: https://www.kaupaneshydrogen.no/.
ABOUT ENOVA
Enova is a state enterprise, located in Trondheim. The ownership is managed by the Ministry of Climate and the Environment (KLD). KLD issues our assignment letter and receives our reporting. It is the Ministry of Climate and the Environment that looks after the entirety of the government’s climate and environmental policy.
Facts about “Hydrogen production for maritime transport 2027”:
Support for the production of hydrogen from renewable power generation, intended as fuel for the maritime sector.
- The name alludes to the plants being able to deliver hydrogen to the market from 2027.
- Competition for support where Norway is divided into three competition areas according to the price areas for power: Southern Norway (NO1, NO2, N5), Central Norway (NO3), and Northern Norway (NO4).
- Support of up to 80 per cent of total investment costs and a maximum of NOK 500 million per project in the competition area of Southern Norway, and up to NOK 320 million per project in the areas of Central Norway and Northern Norway.
For further information about Enova, please refer to the website: https://www.enova.no/.
