New support program for hydrogen in Norway

NSP 13-07-2017
A hydrogen fuel station in Reykjavik (Iceland)

The national public financial support agency Enova, has launched a new support program for a national rollout of hydrogen refuelling infrastructure.  Enova will now support faster growth in the use of hydrogen vehicles, and assess the growth pace and support scheme annually in accordance with vehicle development in the coming years.

Program Goals: Emission free transport sector

When the cost of hydrogen vehicles become competitive, hydrogen can be an important contributor in making the transport sector emissions free. Therefore, Enova now wants projects that help reduce costs and build experience. Enova earlier this year made it possible for the professional market to get support for the purchase of hydrogen fuel cell vehicles, and the support for filling stations is well suited to this.

Targeted infrastructure development program

Enova wants to contribute to a customized and targeted infrastructure development:

Hydrogen stations that have a customer base will be given priority in the competition for the funding available. It improves the profitability of the project, and enables the Enova hydrogen program to get usage experience as early as possible. Particularly stations whose attributed to larger car fleets in commercial and public transport can provide useful operating experience quickly.

Facilitation of a faster growth

Projects which are economically successful could show both private and business professionals that hydrogen is a real alternative. In this way, the support offer facilitates a faster growth in the hydrogen market when access to hydrogen cars is increasing. If you can demonstrate that selling hydrogen is profitable, the commerical investment would take place.

Support opportunities

The program for a national rollout of hydrogen refuelling infrastructure is part of the range of support opportunities Enova has for using hydrogen in the transport sector, and Enova believe that the range of support programs will help realize a number of good hydro projects in the coming years.  Support opportunities include:

  • Innovative hydrogen technology
  • Hydrogen vehicles
  • Building of hydrogen fuel station  

New offer to public players

A new offer is that public and private players seeking support for hydrogen vehicles can also get support to build filling stations at the same time. In addition, Enova can support municipalities and county municipalities that wish to build hydrogen stations to electrify public transport services.

Business motivation

The Norwegian hydrogen business community welcomes this new national support scheme, and the country’s Hydrogen business sector is fully motivated to maximise the impact of hydrogen-based transport in Norway. But the hydrogen business sector believe even stronger actions and a clearer commitment on national level is needed for a stronger growth:

Build more and faster

Hydrogen is a competitive energy storage medium for large scale integration of renewable electricity that can be used in the Norwegian transport sector. The European Commission made this conclusion already in 2012 – let’s go for Hydrogen together with private and public players and with targeted support programs.

Hydrogen 13-07-2017

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New energy and climate technology in Norway

nsp-24-10-2016

New technology in general, and energy and climate technology in the industry in particular, has been subjects of increased focus for the Norwegian Energy Department and ENOVA in 2015. The goal of the technology projects is to harvest experience that will contribute to expertise development, innovation and spread of the technology – both nationally and internationally. ENOVA’s role is allowing new technologies to be tested in the market, and then the market can determine the winners. The GREBE-Project would follow the development and results of this programme closely.

ENOVA was established in 2001 in order to drive forward the changeover to more environmentally friendly consumption and generation of energy in Norway. ENOVA promote more efficient energy consumption and increased production of ‘new’ renewable energy via targeted programmes and support schemes.  A number of energy and climate and projects received support in 2015.

Technology projects often have relatively modest energy results compared with the support they receive. Untested and immature technology will usually be significantly more expensive than standard solutions. The support need will therefore also be higher than for projects based on well-tested technology. The total, direct energy result for 2015 is thus modest compared with the support of NOK, but these projects are expected to result in long-term ripple effects and positive effects for the climate.

Selection of the 10 largest projects within energy and climate technology 2015:

  • Wave4power AS – Full scale demonstartion of 100kW wave power buoy
  • Agder Energi Vannkraft AS – Small scale power turbine
  • Kildal Kraft AS – Mini power station installed in container
  • Lyse Elnett AS – Grid technology – reduction of grid loss
  • NEL Fuel Norway AS – Energy efficient hydrogen filling station
  • Eidsvik Offshore ASA – Installation of energy system (battery) in supply vessels.
  • Glencore Nikkelverk AS – One-stage electrowinning process
  • Arba Follum AS – Production of bio-gas
  • Tizir Titanum AS – Verification of new furnace technology
  • Posten Norge AS – Low-energy logistics building based on RE

Development and introduction of New energy and climate technology in the market  – in 2015 a total of 54 projects were granted funding commitments from ENOVA.  Overall, this amounted to NOK 1,4 billion.

Climate Agreement in the Storting in 2012 

The development of new energy and climate technology is very important in order to solve the global climate challenges. However, these new technologies must reach the market in order to have the desired impact.

In the Climate Agreement in the Storting in 2012 – the Storting look upon the primary goal of investment in new energy and climate technology as investments that should contribute to reducing greenhouse gas emissions and support the development of restructuring energy end-use and energy production in the long term by developing and utilizing technologies and new solutions – that can contribute to this.

With its capital base and proximity to the market – they saw ENOVA as a instrument to bring technology initatives from the pilot phase and over to market introduction.

From 2012 ENOVA has the responsibility for management of the Energy fund. The Energy fund is the instrument that the Stortinget suggested as a solution for getting ideas and pilot projects on their way to market.

From the pilot phase – to market

The way from the pilot phase to the market – is a critical phase for the projects, where they will demonstrate to the market that the technology functions under normal conditions. This is also a capital intensive phase. When ENOVA awards support to technology projects, this is with the expectation that many of them will be successful, but not all.

Making it through the critical introduction phase is no guarantee for success in the market. Some technologies succeed and gain a foothold which can be built upon. However, for many technologies, the first encounter with the market will reveal a need to test new approaches and concepts, which may entail having to take one or more steps backwards in the innovation chain. Other technologies are weighed and found wanting in the competition with other technological solutions.