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Norway: Gen2 Energy AS and Vefsn Municipality Sign Green Hydrogen Agreement

By September 6, 2021 3   min read  (563 words)

September 6, 2021 |

Fuel cells works, hydrogen, Norwegian Government, h2, fuel cells

In the agreements signed on Monday 6 September, Gen2 Energy and Vefsn municipality have agreed on the future purchase and sale of two plots in Vefsn municipality for the production and shipping of green hydrogen on a large scale.

The parties agree that Gen2 Energy can purchase commercial space in Mosjøen to build production facilities for green hydrogen, as well as gain access to quay facilities for shipping green hydrogen to relevant markets in Europe and Norway. Gen2 Energy will build production facilities that ensure the production of green hydrogen in large volumes and that are delivered to customers in 40-foot containers.

Jonas Meyer, general manager of Gen2 Energy says, – We are very pleased to have chosen Mosjøen as the location for large-scale production of green hydrogen. Mosjøen has a good mix of cheap renewable energy, relevant labor from the process industry and good shipping opportunities.

Berit Hundåla, mayor of Vefsn municipality says, – This is a great opportunity for us. Vefsn has a significant industrial history behind it with aluminum production being the most extensive with a large number of associated supplier companies. The fact that there are now great opportunities for establishment within green industry, which the hydrogen producer Gen2 Energy represents, means that the industrial community Vefsn has even more legs to stand on. This means new future-oriented jobs and a basis for a strengthened population base, the mayor emphasizes.

The agreement gives Gen2 Energy the opportunity to build two production facilities, one in the Nesbruket business area (approx. 25 acres) and one in the Holandsvika business area down Drevjaleira (approx. 40 acres). Both areas must be prepared for hydrogen production and this work will start immediately. Gen2 Energy plans to start production of green hydrogen in the first half of 2024. This presupposes that all necessary approvals are in place.

An important part of the agreement is that Gen2 Energy will have access to quay facilities that make it possible to ship out large amounts of green hydrogen stored in containers. The Port of Helgeland is included as a party to the agreement and the parties agree to find good solutions for the quay in both places.

The parties agree that efforts will be made to facilitate local and regional use of green hydrogen. A current player is Alcoa in Mosjøen .

Trym Vassvik, Communications Manager at Alcoa, says, – Alcoa Mosjøen expects to sign a letter of intent with Gen2 Energy in the near future in connection with their establishment in Mosjøen. The parties want to study the potential for developing solutions for e.g. logistics, grid utilization and power, the use of hydrogen and oxygen as input factors and the development of a larger market for the use of green hydrogen locally.

– Hydrogen is expected to be a strong contributor to a zero-emission society, and we at Gen2 Energy look forward to continuing to work towards local consumption and exports, says Jonas Meyer in Gen2 Energy .

– The negotiations have been trusting and solution-oriented, says mayor Berit Hundåla and continues, – It provides a good basis for further work to ensure the establishment. Vefsn municipality is used to dealing with the industry and I am confident that Gen2 Energy will have a steady and predictable partner with it in the work with the establishment.

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