Do not say what it will cost – E24

NHO and LO believe Norway needs large-scale hydrogen investment to reach climate and industrial goals. It will require a lot of effort and large investments.

On Tuesday, LO leader Peggy Hessen Følsvik and NHO chief Ole Erik Almlid presented a joint hydrogen strategy at Folkets Hus in Oslo.

they wish Help the country launch hydrogen investments in Norway, and come up with several proposals for measures (see factbox below on this issue).

They think this will cost both the business and the state, but they don’t estimate the amount.

“We have not attempted to summarize the total costs of the proposals put forward in this strategy,” they wrote in the strategy proposal.

“But we are clear that it will require significant investment and willingness to take risks in companies, significant government contributions in both infrastructure, expertise and research and development, risk mitigation through CFDs and investment support for factories, production and distribution facilities,” they write.

– a completely different scope

NHO and LO believe that an important market for hydrogen will develop. They noted that hydrogen could also replace fossil energy in industry in Norway.

– Europe will demand hydrogen to a completely different extent in the future, says NHO CEO Ole Erik Almlid.

– Hydrogen is a prerequisite for securing jobs in today’s industry, says LO leader Peggy Hessen Følsvik.

The hydrogen industry is planning a total of 126 projects in Norway, according to the Norwegian Hydrogen Forum. Of these, 51 are hydrogen production plants.

Oil and Energy Minister Terje Aasland (Ap) received the LO and NHO proposal for a hydrogen strategy on Tuesday. He admits that hydrogen is not free.

– It is expensive compared to using natural gas and electricity directly. But we do have some climate-related commitments that aren’t entirely insignificant, Asland says.

A number of players have worked on the strategy, including Aker Horizons, Celsa, Swedish Electricity and IT Association, Equinor, Eramet, Fornybar Norge, Zero, Horisont Energi, Gen2 Energy, HydrogenPro, Nel Hydrogen, Norsk Hydro, Norsk Industri, Norsk Hydrogenforum, Statkraft, off the shores of Norway and Yarra, with more.

– requires some support

E24 asks NHO chief Ole Erik Almlid why they don’t appreciate how much government aid is needed.

Costs are uncertain. It depends, among other things, on how many projects are being talked about. Al-Maleed says: We will enter into a dialogue with the government on this issue.

– Many are worried about large subsidies, and this will require a large amount of subsidies?

– It requires some support, but maybe the amount we’re talking about is exaggerated, he says.

He notes that the authorities can also do a lot with the way public procurement takes place, and that CFDs can help create a Norwegian hydrogen market.

– I don’t want this to be just support. This is a market that is going to explode, and the business world needs help getting started. Al-Maleed adds that we also see that other countries, such as the United States of America and Europe, are doing this.

Are we talking about a few billion or tens of billions?

– We don’t know how much it will cost. The question is what is the alternative? He says it looks as though a lot of people have been allergic to subsidies in the past year, and warns that companies may turn away from Norway.

– If it’s too much risk to bet in Norway, they’re betting in other countries like the US and Europe, says the NHO chief.

– Nothing is planned in Norway

Norske Hydrogenpro produces today ElectrolyzersElectrolyzersThe electrolyzer separates hydrogen from water using electricity In China. Now they want to set up a factory in the United States.

“We’re working on finding a site in Texas, and we expect to be ready for electrolyzer production in the US at the end of next year,” Hydrogenpro CEO Tarje Johansen tells E24.

The production capacity will be 500 megawatts, about the same as that of the Neil plant that began operating in Porsgrunn last year. Neil also looks at us. Hydrogenpro is targeting a capacity of five gigawatts within five years.

– As of today, none of this is planned in Norway. It is being planned in the United States and Europe. Johansen says we have a partner in Europe who will build hydrogen production facilities with our technology.

He would like to see more investment in green hydrogen in Norway, but he thinks the government is making the best arrangements for the hydrogen produced from the gas.

– He says Norway is far behind on green hydrogen right now.

– He must have enough strength

Hydrogen projects require a lot of electricity. By 2030 alone, 6-12 terawatt hours (TWh) of electricity may be needed to make hydrogen, according to NHO and LO. This corresponds to approximately 4-9 percent of Norway’s current energy consumption.

– Volsvik says we must have enough strength.

Previously, the LO and NHO have discussed with the government the need for large-scale energy promotion to secure electricity for industry and climate initiatives.

– If we want to succeed in the hydrogen project, we must also succeed in the power aspect. Asland says we should have more renewable energy available.

He mentions onshore wind power as an energy source that can contribute a lot of energy in the short term.

Anyone interested in hydrogen should also be interested in winds on Earth, says Aasland.

The NHO chief believes more needs to be done to reach Norway’s 2030 climate target, and is concerned that many are now suggesting that the target may be too difficult to reach.

– We must stop saying we won’t, says Al-Maleed.

– It will cost a lot

– It will obviously cost a lot, says Ingebjørg Secretary General Telnes Wilhelmsen of the Norwegian Hydrogen Forum to E24.

She says the Norwegian Hydrogen Forum has proposed a first call where the country offers a form of subsidy called CFDsCFDsWith CFDs, the state can, for example, cover the difference (difference) between the price of hydrogen and the price of fossil energy for the hydrogen producer or consumer, so that the use of hydrogen becomes more attractive. To obtain 25,000 tons of hydrogen over ten years.

It is now difficult to calculate the costs with the recent price increase, but we estimate that advertising could cost up to NOK three billion, spread over ten years. It’s not a very deterrent amount, Wilhelmsen says.

She believes that the Norwegian authorities are already working on providing much-needed start-up assistance, and that the policy apparatus has set aside about $2 billion for the industry in 2022.

– I think there’s been an unfortunate debate about support now. Because there is no doubt that going green will cost money. But she says there are no deterrents.

Some of the proposed measures are not directly supported, such as those of public cancellations that should be used to stimulate the hydrogen market.

– There are many procedures that we propose that will not cost anything. A willingness to invest in the business. Capital has been raised and there are quite a few who are willing to take the risk, she says.