Fortescue Metals Group and Statkraft have agreed to extend and amend their existing power purchase agreement for the Holmaneset green hydrogen and green ammonia project, which is currently progressing through its feasibility phase. The revised agreement extends the timeframe to 2029 and introduces a long-term power supply commitment lasting ten years. This adjustment is designed to strengthen the project’s foundations as it advances through technical studies, environmental assessments and commercial planning.

Statkraft’s Executive Vice President for Markets, Hallvard Granheim, said the renegotiated deal supports the company’s broader mission to deliver stable and competitive power agreements that enable new green industrial development. He emphasised that predictable energy supply is critical for industries seeking to adopt low-carbon technologies and for Europe’s wider green transition.

Extended timelines support feasibility and approvals

Fortescue Project Director Gabriela Celin welcomed the updated agreement, stating that the revised timeframe provides additional room for the approvals and studies needed to progress the Holmaneset project. She noted that comprehensive feasibility work and environmental review processes are essential for ensuring responsible development and aligning the project with regulatory expectations.

Under the terms of the amendment, the power purchase agreement remains conditional on financial close and the formal start of commercial operations. This structure ensures that the agreement progresses in tandem with the project’s technical and financial milestones, providing flexibility while safeguarding the interests of both parties.

The extended agreement highlights the shared commitment of Fortescue and Statkraft to advancing large-scale renewable energy projects that support the production of green hydrogen and green ammonia. These fuels are expected to play a central role in decarbonising heavy industry, maritime transport and fertiliser production across Europe. As interest in green hydrogen continues to rise, partnerships between project developers and power providers are becoming increasingly important for securing reliable long-term energy supply.

The Holmaneset project forms part of a growing portfolio of renewable hydrogen initiatives across Europe, supported by robust policy frameworks and rising commercial interest. By strengthening their collaboration and securing extended power commitments, Fortescue and Statkraft are helping to build the foundations for a future low-carbon energy system that depends on reliable access to renewable power and scalable hydrogen production.

Source: 

https://solarquarter.com/2025/12/19/fortescue-and-statkraft-extend-power-agreement-for-holmaneset-green-hydrogen-and-ammonia-project/