Aker Horizons ASA, through its wholly-owned subsidiary Aker Narvik AS has announced the agreement to establish a joint venture with Nordkraft AS to develop sites for power intensive-industries in Northern Norway. The venture is part of Aker Horizons’ project to establish a green industrial hub in the Narvik region.
Hydrogen and renewable energy
Aker Horizons and its portfolio companies are utilizing their capabilities across hydrogen and renewable energy to establish green value chains for power-intensive industries. The JV aims to develop attractive sites for power-intensive industries, with roads and other common infrastructure such as water supply, fiber access, and grid infrastructure for shared use, starting with acquiring Nordkraft’s rights to the sites at Kvandal, Fjellbu, Balsfjord, Korgen and Straumsmo. Aker Narvik will hold an 80 percent stake in the JV and Nordkraft the remaining 20 percent. Closing of the agreement is expected by 30 September 2022.
Region highly attractive for decarbonizing
“Northern Norway, and the Narvik region in particular, offers highly attractive opportunities for decarbonizing power-intensive industries, using the area’s renewable energy surplus. In Nordkraft, we’ve found a partner with century-long experience with developing, constructing, producing and distributing low-cost renewable energy. Combined with the industrial expertise and real estate development competencies in the Aker group, we’re ideally positioned to develop strategically located land into industrial sites, along with a comprehensive network solution for the region. This will serve as a platform for Aker Horizons’ flagship green industrial hub in the Narvik region, which together with local industry, will convert renewable power into large-scale hydrogen production, green value chains and sustainable export industries,” said Kristian Røkke, CEO of Aker Horizons.
JV gains resources, capital and expertise
“With this JV, we gain access to considerable resources, capital and industrial expertise through Aker Horizons, which shares our vision of developing new green industry in the Narvik region, that will play an important role in the path to a global net-zero carbon economy,” said Eirik Frantzen, CEO of Nordkraft.
In October 2021, Aker Horizons announced several strategic initiatives in the Narvik region. The region offers attractively-priced renewable energy, extensive transportation connections for export including road, rail and port facilities, as well as local authorities committed to the energy transition. Narvik forms part of Aker Horizons’ expanding portfolio of hydrogen-derivative projects, spanning from Norway to Chile, which combined represents 1.8 GW in net capacity under development.