Nel and Statkraft will use the latter's alkaline electrolyser technology to generate green hydrogen instead of fossil fuels for use in the the 40 - 50 MW plant, enabling a lower emissions production process for Celsa's reinforced steel.
"We're happy to be involved in such an important project, where we can start building hydrogen as an important future business-line for Norway and Statkraft and cut CO2-emissions from the Norwegian industry significantly," said Bjørn Holsen, head of new business at Statkraft.
The partnership is part of a green hydrogen value chain project Statkraft is undertaking with Celsa and the industrial park where the plant will be located - Mo Industry park.
Currently, Statkraft's steel production process leads to annual CO2-emissions of approximately 100,000 t/yr, and through introducing green hydrogen in the process, the partners aim to cut emissions by 60%. The project is targeted to become operational by the end of 2023.
The parties have also identified a number of other industrial opportunities for green hydrogen in the industry park, and have the intention to increase the electrolyser capacity in a number of steps towards 2030.
Holsen added that the project is well positioned for the EU's 'Important projects of common European interest' programme, and will support Norway's hydrogen efforts going forward.