– The market for hydrogen is maturing, and we are happy to be at the forefront of this development, says the CEO of HYDS about the Enova-supported projects HyFuel and KaupEx, which are now entering a new phase towards a final investment decision.
– We are pleased to announce that our projects are progressing as planned. The team is doing an excellent job developing this, and with the support from ENOVA and the full support of our board and owners, we are moving forward confidently. Recently, we held public information meetings which received positive responses from the community.
The market for hydrogen is maturing, and we are excited to be at the forefront of this development. Our current focus includes choosing the right technology partners, obtaining building permits, and securing full financing for our projects. However, the most critical aspect now is securing offtake agreements, states CEO of HYDS, Thor Henrik W. Hagen.
Clear signals to the market
– We already have deliveries to customers in various segments today and plan to have the hydrogen available in larger quantities and lower prices from the second half of 2027. We have strong strategic partners who are actively developing their projects together with us. We are working the markets and strongly urge all potential hydrogen users to get in touch with us. We can assist with technical support and ensure delivery of the hydrogen where it’s needed.
Our products enable the green shift by delivering green hydrogen as an energy carrier directly, by converting green hydrogen into electricity, or by further refining it into products like ammonia, methanol, LOHC or other, says CCO HYDS Frode Kirkedam.
Committing to realization
HYDS, as project lead for the projects, has together with project owners formally accepted ENOVA’s support of totaly NOK 386 million for HyFuel (Florø) and Kaupanes Expansion Project (KaupEx, Egersund).
In November 2024 the projects were awarded support from ENOVA’s program for energy transition in the maritime sector; NOK 180 mill. and NOK 206 mill. for HyFuel and KaupEx, respectively, and is part of Enova’s allocation program for hydrogen production for maritime transport 2027.
Acceptance includes a commitment to carry out the projects and the allocation program obliges the recipients to repay awarded grant together with a conventional penalty of 5% of the support amount if the projects are not carried out.
The acceptance thus implies a major commitment, and the projects will work towards a final investment decision in Q3/Q4 2025.
The HyFuel project was established in 2020. Currently owned by HYDS 50.5%, Sogn og Fjordane Energi 33.5% and Fjord Base Holding 16%.
The KaupEx project was established in 2023 and is owned by HYDS 48%, Dalane Hydrogen 48% and Eigersund Næring og Havn KF 3%.
