Aker Horizons signs long-term power purchase agreement with Statkraft for Narvik green ammonia project

LYSAKER, Norway, July 5, 2023 /PRNewswire/ -- Aker Horizons ASA (OSE: AKH), a developer of green energy and industry, has signed a 10-year power purchase agreement (PPA) with Statkraft, Europe's largest generator of renewable energy, securing a significant amount of the renewable power required for its large-scale green ammonia plant under development in Narvik, northern Norway.

The PPA with Statkraft covers the Narvik plant's first 10 years of operations, from commencement in 2028. The facility, with a planned capacity of up to 600 MW, will be one of the first large-scale green ammonia production facilities in Europe, with an expected production of between 1,000 and 1,500 tonnes per day. 

"Signing a long-term power contract with Statkraft is essential to establish a sound commercial foundation and predictability for the Narvik green ammonia project. This agreement secures renewable energy for the project at competitive prices, paving the way for new green industrial development, new jobs and the ramp up of the European hydrogen economy," says Aker Horizons Asset Development Director Sverre Isak Bjørn.

"By adding this PPA to our portfolio we again contribute to green industry development and decarbonization based on our renewable energy resources. Green ammonia is one of the solutions needed to help the green energy and industrial transition - and reach the net zero target," Statkraft EVP Markets Hallvard Granheim says. 

Aker Horizons is developing green value chains based on competitive renewable energy that is integrated with midstream products such as hydrogen, and downstream end-use products such as green ammonia in Narvik. The company has signed offtake letter of intents with major European energy, industrial and chemical companies for over 1.5 times the planned volumes of ammonia produced in Narvik.

The PPA is conditional upon Aker Horizons taking a Final Investment Decision for the Narvik green ammonia project.

For further information, please contact: 

Marianne Stigset, Communications, Tel: +47 41 18 84 82, marianne.stigset@akerhorizons.com

Christian Yggeseth, Investor Relations, Tel: +47 91 51 00 00, christian.yggeseth@akerhorizons.com

Geir Fuglseth, Communications, Tel: +47 913 70 572, geir.fuglseth@statkraft.com

About Aker Horizons 

Aker Horizons develops green energy and green industry to accelerate the transition to Net Zero. The company is active in renewable energy, carbon capture and hydrogen and develops industrial-scale decarbonization projects. As part of the Aker group, Aker Horizons applies industrial, technological and capital markets expertise with a planet-positive purpose to drive decarbonization globally. Aker Horizons is listed on the Oslo Stock Exchange and headquartered in Fornebu, Norway. Across its portfolio, the company employs approximately 1,100 people in 18 countries on five continents. www.akerhorizons.com

About Statkraft

Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 5,300 employees in 21 countries. www.statkraft.com