HYDS announces investment decisions for hydrogen production facilities in Florø and Egersund
Location in Florø, HyFuel AS
HyFuel AS and Kaupanes Hydrogen AS have made the investment decision to proceed with the construction of two hydrogen production facilities in Florø and Egersund, respectively. Both projects have been developed by Hydrogen Solutions (HYDS) together with their co-owners. Each facility will have an installed electrolysis capacity of 20 MW, and agreements have been signed with Nel Hydrogen for the supply of electrolyzers to both projects.
Frode Kirkedam, CEO i Hydrogen Solutions AS (HYDS)
– “We are very pleased that HyFuel and Kaupanes are moving forward, and we look forward to working closely with our partners on these two projects,” says Frode Kirkedam, CEO of HYDS.
– “This is an important step in developing the market for green hydrogen in Norway and the Nordic region, and a major milestone for HYDS, co-owners, and project partners,” adds Idar Sønstabø, Chairman of HYDS and CEO of one of the HYDS ownership companies, Dalane Energi AS.
Location at Kaupanes, Eigersund – Kaupanes Hydrogen AS
The hydrogen market has seen positive development, with gradually increasing demand from customers in maritime, mobility, construction, and industrial sectors. This growth has helped reduce market risk and was a key factor in the investment decisions. Support from Enova has also been critical in enabling these projects to proceed on competitive terms, Kirkedam notes.
HyFuel and Kaupanes were awarded support from Enova under the “Hydrogen Production for Maritime Transport 2027” program one year ago, receiving NOK 180 million and NOK 206 million, respectively. Over the past year, HYDS has developed the projects on behalf of HyFuel and Kaupanes up to the final investment decisions.
– “Rapid establishment of hydrogen production facilities is essential to ensure sufficient green hydrogen supply so that the maritime industry, transport, and industrial sectors can transition to zero-emission solutions. This enables significant emission reductions in sectors that cannot be fully electrified and is important for achieving national and global climate targets,” says Kirkedam.
In addition to the orders placed with Nel, the projects have a letter of intent with Norwegian company Moreld Apply for engineering, installation, and execution of the projects.
Fantastic news from HYDS!
The establishment of hydrogen production at Fjord Base in Florø represents a major step towards building a complete green maritime and industrial value chain on Norway’s west coast. With existing industrial infrastructure, strong logistics activity, and multiple potential end-users, the region is well positioned to take hydrogen into rapid use – from high-speed ferries and offshore vessels to internal base transport and industrial operations.
– “We’re thrilled to congratulate Frode K. and the entire HYDS team on their final investment decision for the Hyfuel project in Florø!
This marks an important milestone for the Norwegian hydrogen and ammonia value chain. Both Ocean Hyway Cluster (OHC) and Hub for Ocean (HFO) are excited to see this project moving forward — a development that will benefit many companies and strengthen the entire ecosystem. We look forward to continued collaboration with HYDS and all partners involved in bringing this project to life,” says Martin Hennum, Cluster Manager at Ocean Hyway Cluster.
Fjord Base is set to become a natural hub for hydrogen production, distribution, and utilization, with by-products such as oxygen and heat available for local industry and energy use. The project provides a unique opportunity to implement zero-emission operations for high-speed ferries, service vessels, and other maritime activities, while also establishing Florø as a national reference point for green hydrogen in the Nordic maritime sector.
– “Florø has the potential to become a national demonstration project for zero-emission maritime operations, showing how local energy resources and infrastructure can be used efficiently and sustainably,” adds Stein Kvalsund, CEO of Hub for Ocean.
With these projects, Vestland and Florø are poised to take a leading role in Norway’s green maritime transition, building both industrial activity and competence, while contributing to a robust and sustainable hydrogen value chain.
– “Together, we are building the green maritime and industrial energy infrastructure and logistics chain of the future,” Hennum concludes.
About HYDS
Hydrogen Solutions AS (HYDS) is a Norwegian company headquartered in Leirvik on Stord. The company develops, owns, and operates facilities for the production of green hydrogen based on renewable energy. HYDS is active across the entire hydrogen value chain, from project development, power procurement, and electrolysis to the distribution of hydrogen and related products. The company has documented experience in establishing and operating hydrogen systems and is among the few Norwegian developers with both operational experience and a scalable project portfolio.
About HyFuel
HyFuel AS is owned by HYDS, Sogn og Fjordane Energi AS, and Fjord Base Holding AS. The hydrogen production facility will be established at the supply base in Florø, Kinn municipality. HyFuel has received NOK 180 million in support from Enova.
About Kaupanes Hydrogen
Kaupanes Hydrogen AS is owned by HYDS, Dalane Energi AS, and Eigersund Næring og Havn KF. The hydrogen production facility will be established in the industrial area at Kaupanes in Eigersund municipality. Kaupanes has received NOK 206 million in support from Enova.
Contact for more information:
Frode Kirkedam, CEO, HYDS
+47 995 33 300
Website: www.hyds.no