Atome Energy, through its 75% owned Icelandic subsidiary, has entered into several agreements to realise a green ammonia production plant in Iceland.
Green Fuel has signed a term sheet with renewables producer HS Orka for up to 40MW of electricity and a letter of intent with ON Power, for up to 20MW of electricity.
The developer has also signed a memorandum of understanding (MoU) with Samherji, one of Iceland’s largest fishing companies, for the decarbonisation of its marine fleet.
Green Fuel’s non-binding term sheet with HS Orka, a producer of renewable energy from geothermal and hydroelectric sources, paves the way for both parties to enter a binding PPA, subject to conditions, before the end of 2023.
The power is due to be delivered for the start of Green Fuel’s commercial operation, scheduled in 2026.
In the letter of intent with ON Power, the electricity is expected to be available from 2027.
Green Fuel’s MoU with Samherji is for the parties to collaborate on the development of ammonia-powered fishing vessels.
A working committee has been established across both companies.
In Iceland, the maritime sector accounts for around 30% of the country’s GDP and is a significant contributor to the country’s emissions.