Opening of the world’s first production plant for clean hydrogen with integrated carbon capture at the Energy Park in Øygarden municipality, Norway.
Press release, October 23rd 2023
H2 Production AS (H2P) and ZEG Power AS (ZEG) proudly announce the opening of the world's first commercial plant for clean hydrogen production with integrated carbon capture at the Energy Park. This represents a significant milestone for both companies in their pursuit of a sustainable, low-carbon future, aligning with the Norwegian government's hydrogen and climate initiatives and the EU's "Green Deal."
The ZEG H1 production plant, located near the Northern Lights CO2 storage facility, will produce approximately 1 ton of hydrogen per day and aims to provide captured CO2 for permanent subsea storage. The plant stands as a symbol of Norway's commitment to innovative technology and environmental responsibility. From an energy perspective, Norway holds a strategic position in Europe, and the ZEG technology has the potential to offer Europe clean hydrogen derived from Norwegian gas, making it a significant opportunity.
The programfor the opening
The program includes speakers such as Frederic Hauge from the Bellona Foundation, Mayor of Øygarden Tom Georg Indrevik, County Mayor of Vestland Jon Askeland, Monica Mæland from Bergen Næringsråd, Ståle Kvernrød from Enova, CEO of ZEG Arild Selvig, and CEO of CCB Energy and H2P Ronny Haufe. The official opening ceremony takes place at the hydrogen plant, followed by a tour of the Northern Lights facility.
A significant milestone in the development of clean hydrogen technology
The opening signifies a historic moment for both ZEG and H2P. The journey to develop the ZEG technology has spanned 23 years of research and development by leading experts, supported by private investors and public grants, from early-stage to prototyping and piloting. CCB Energy and H2P have played a leading role in the development of the Energy Park, focusing on environmentally friendly companies. H2P's role as a future hydrogen producer and purchaser of the ZEG H1 plant has been crucial. Their visionary and unwavering commitment to embracing new climate-friendly technology has pushed the boundaries of sustainable hydrogen production. H2P has also taken responsibility for developing and facilitating technical solutions for a comprehensive establishment. The facility stands as proof of Norway's potential by maintaining a strong focus and long-term perspective on the development of environmentally friendly technology.
The realization of the facility would not have been possible without dedicated employees, owners, and key partners, including the Institute for Energy Technology, which initiated research in this area over 20 years ago, Zeton, a strategic partner based in the Netherlands, which played a significant role in the engineering and construction of the ZEG H1 plant, and many others. The project also received funding through public support from Enova, which was instrumental in realizing the project.
Ronny Haufe, CEO of H2P, shared his thoughts on the journey, saying, "The opening of the hydrogen plant is a proud moment for H2P. This is the first evidence of industries with a clear climate profile emerging as a result of Northern Lights and Norway's commitment to CCS. Together with our owners, we have worked tirelessly to contribute to the establishment of future clean hydrogen production and carbon capture. This marks an important step towards our common goal of a more sustainable world. It is also a strategic step for CCB Energy's development of the Energy Park as an industrial park for companies with climate-friendly technology."
Arild Selvig, CEO of ZEG, emphasized the significance of this milestone for ZEG, stating: "ZEG's mission is to realize efficient and clean production of hydrogen from gas with integrated CO2 capture, offering technology for the production of affordable and sustainable hydrogen, which can contribute to global energy security. The ZEG H1 plant embodies our commitment to these ideals and is an important step on our journey to becoming a commercial company. It is an honor to collaborate with H2P and our other high-quality partners, a cooperation which hopefully can propel ZEG to the forefront of next-generation clean hydrogen technology."
The way forward
The opening of the hydrogen plant marks just the beginning for CCB Energy. Not only will H2P produce hydrogen, but CCB Energy's goal is also to operate, own, and facilitate other initiatives and companies in clean energy and green industry. The presence of Northern Lights, Norway's CO2 storage facility at the same site, will allow industrial players who currently emit CO2 to store it locally with the lowest possible carbon footprint. Due to nearby access to natural gas, this location will also be prime for large-scale low-carbon hydrogen production based on natural gas with integrated CO2 capture.
On the ZEG side, further scale-up of the technology is currently underway. The company, together with industrial owner SLB, is working to scale up the ZEG technology to a medium-scale technology platform and a ZEG H25 plant, a 25-fold capacity increase from the H1 plant opened today. This development is crucial for ZEG's mission of delivering cost-effective, low-emission hydrogen at scale.
The H1 projected receives acclaim from Bellona
Frederic Hauge, founder of the Bellona Foundation was present at the opening, and was full of praise for the ambitous project: “Bellona is delighted to see ZEG and H2 Production open the first plant in Øygarden for hydrogen production from natural gas with integrated CO2 capture. Bellona believes this is a sensible use of fossil energy and crucial if hydrogen is to be part of the green shift. The ZEG H1 plant in CCB Energy Park is a technological breakthrough and a significant achievement in the quest for a greener and more sustainable future.
Hydrogen is needed as an energy carrier in industry and the part of the transport sector that cannot be electrified. The EU aims to produce 10 million tons of hydrogen annually by 2030 and import an equivalent amount. Therefore, it is essential that hydrogen is produced with the lowest possible greenhouse gas emissions. Much of this can be produced using Norwegian gas if we capture and store the CO2, as planned at this facility.
Bellona has worked to facilitate hydrogen production in Norway, including exemptions from CO2 taxes if CO2 is captured and stored. Bellona believes so-called blue hydrogen from natural gas with CCS is crucial in the coming years. Currently, the situation is that we need all the electricity we have for direct electrification, and we actually do not have enough power for this. Blue hydrogen will, therefore, be essential in scaling up hydrogen production in the coming years.
A project like the one opened today with ZEG is not possible without forward-thinking companies like CCB Energy and H2P taking a position and ownership. We are proud to have supported this initiative for a long time and hope the technology will reach its full potential.
The facility is also proof of the synergies and added value that Norwegian authorities create with their investments in Langskip to establish infrastructure for CO2 transport and storage. Bellona is excited about this technological breakthrough and proud to have supported this initiative and ZEG for many years.”
H2 Production, a wholly owned subsidiary of CCB Energy, operates at the Energy Park in Øygarden, Norway. H2P is the owner and operator of hydrogen production with carbon capture. The parent company, CCB Energy, actively works to develop industrial parks with a clear climate profile, encompassing everything from carbon capture and handling to participation in value chains involving hydrogen as an energy carrier. The owners of CCB Energy and H2P include Bernh Larsen Holding and Norsea Industrial Holding, owners who have demonstrated an active role in environmental matters.
ZEG develops ZEG ICCTM technology, a clean hydrogen production technology with integrated carbon capture for various end-user applications, including industry and mobility sectors. The technology is based on sorption-enhanced reforming and was originally developed at the Institute for Energy Technology (IFE), a highly recognized research institute in Norway.
ZEG’s owners include SLB, IFE Invest, Stratel, AP Ventures, Nysnø Klimainvesteringer, SPARX Mirai, StartupLab Founders Fund, Nordea Asset Management and Danske Invest.