Aker Horizons and Statkraft will jointly explore opportunities for green hydrogen and ammonia production in India and Brazil.
The partnership will target local steel and fertiliser industries.
The collaboration brings together Aker Clean Hydrogen, a global integrated hydrogen, ammonia and methanol producer, and Statkraft, a developer and generator of renewable energy with a presence in India and Brazil.
Statkraft executive vice president of international power Jurgen Tzschoppe said: “With considerable renewable energy production and market activities in India and Brazil, Statkraft is well positioned to capture green hydrogen opportunities in these two huge and important energy markets.
“Developing such opportunities helps us grow our business and reduces greenhouse gas emissions in India and Brazil.”
In Brazil, Aker Clean Hydrogen, Statkraft and Sowitec, a company specialising in developing renewable wind and solar assets, aim to jointly develop power-to-x projects in the state of Bahia.
The first project opportunity being pursued is a large-scale hybrid project, which combines renewable power generation, and hydrogen and ammonia production for the local fertiliser industry.
It is scheduled to be in commercial operation by 2027.
Brazil is the world’s fourth largest consumer of fertilisers, accounting for about 8% of global demand and imports more than 80% of its consumption.
Recently the Brazilian government enacted the 2022-2050 National Fertilizer Plan, seeking to reduce the Brazilian dependency on imported fertilisers by, amongst other means, attracting and supporting foreign investments.
Aker Clean Hydrogen chief executive Knut Nyborg said: “The potential environmental benefits from decarbonizing hard-to-abate industries like the steel and ammonia industry in India and the fertilizer industry in Brazil are substantial.
“Both India and Brazil are large consumers of hydrogen, have supportive governmental policies and benefit from world-class renewable energy resources, which offers significant opportunities for green hydrogen and ammonia production.”
Aker Clean Hydrogen and Statkraft have agreed to explore joint development opportunities of fully integrated renewable power generation and green hydrogen production in India, targeting domestic hard-to-abate industries such as the steel industry, as well as ammonia for domestic use and export.
The steel industry in India produces about 100 million tonnes of steel annually.
In India, green hydrogen can be used to replace grey, fossil fuel-based hydrogen, coal and natural gas as fuel and feedstock.
India currently consumes approximately seven million tonnes of grey hydrogen per year, making it the world’s second largest hydrogen consumer.
The country’s hydrogen demand is expected to reach approximately 12 million tonnes by 2030 and about 28 million tonnes by 2050.