Aker Horizons signs 10-year PPA for Narvik ammonia plant

Aker Horizons has signed a 10-year power purchase agreement with Statkraft for the supply of renewable power to Aker's green ammonia plant under development in Narvik, northern Norway.

The PPA covers the plant's first 10 years of operations from 2028. The contract is conditional on a final investment decision on the green ammonia project. The source of the power would be existing hydropower generation, a Statkraft spokesperson said.

"The facility, with a planned capacity of up to 600 MW, will be one of the first large-scale green ammonia production facilities in Europe, with an expected production of between 1,000 and 1,500 tonnes per day," Aker said.

The company had signed offtake letters of intent with energy, industrial and chemical companies for over 1.5 times planned volumes at Narvik, it said.

No power price was put on the PPA. The year-ahead baseload Nordic futures power contract on EEX settled at Eur70.20/MWh July 4.

Platts, part of S&P Global Commodity Insights, assessed the weekly price of renewable-derived ammonia (Canada delivered into Northwest Europe) at $749.56/mt.

Low carbon ammonia prices have stabilized in recent weeks after steep falls earlier in the year, driven lower by falling natural gas prices and a weak import market.