The Holmaneset green energy project in Norway, led by the Australian firm Fortescue, has recently seen a significant shift in its development timeline. As of late 2025, Fortescue and the Norwegian hydropower company Statkraft reached an agreement to renegotiate and extend their existing Power Purchase Agreement (PPA). This amendment converts the previous power deal into a 10-year supply arrangement and effectively pushes the project’s anticipated operational start date past 2029. The extension was designed to provide additional flexibility as Fortescue continues to navigate the feasibility phase, conduct environmental studies, and secure necessary regulatory approvals for the facility.

Technologically, the project remains a cornerstone of Europe’s green energy goals, aiming to produce approximately 225,000 tonnes of green ammonia annually using 300 MW of hydroelectric power. In early 2024, the project reached a technical milestone by selecting KBR’s “K-GreeN” technology for its grassroots ammonia plant. Despite the updated schedule, the project continues to be backed by a substantial €203.7 million grant from the European Union’s Innovation Fund. This funding underscores its strategic importance for decarbonizing hard-to-abate sectors like long-haul shipping and heavy industry within the European market. Also, such projects provide Norway with the capacity to power critical infrastructure such as AI data centres thus being a catalyst in economic growth.

April 5, 2023

Holmaneset green energy plant in Norway is set to provide renewable energy to Fortescue Future Industries (FFI). This comes following a long-term Power Purchase Agreement (PPA) with Statkraft in Oslo on March 30, 2023.

This will support FFI’s operational plans for a 300-megawatt green hydrogen and green ammonia facility. FFI CEO Mark Hutchinson said, “There is an urgency to generate green hydrogen and green ammonia and support global decarbonization as fast as possible. FFI has collaborated with Statkraft to develop one of its first green ammonia projects.

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This is because they are the largest renewable energy producer in Europe. Thus, achieving ambitious goals to cut greenhouse gas emissions in Europe will be crucial. This is also helping FFI become a leader in green hydrogen and ammonia production.”

Statkraft EVP Markets Hallvard Granheim added: “Providing renewable and competitive power to Norwegian industries is crucial for Statkraft. With this PPA, we also support the growth of Norway’s green initiative. Green hydrogen and ammonia are two solutions to decarbonize society and achieve net zero.”

The Holmaneset green energy plant in Norway

FFI conducted a Scoping Study across Norway to find potential sites for constructing port infrastructure and renewable energy facilities. Due to that process, the Holmaneset Project site was recognized as a prime location. It is situated approximately 8km west of Svelgen in Bremanger municipality.

FFI is conducting several environmental, viability, and social studies. The studies are part of the Holmaneset Project’s current feasibility phase. It also creates a project concept by Norwegian laws, environmental and social policies and values, and global best practices. The PPA is conditional upon a favorable Final Investment Decision for the Holmaneset Project.

Fortescue Future Industries and Statkraft Power Purchase Agreement

Fortescue Future Industries (FFI) is a multinational green energy company. It aims to produce green hydrogen from only renewable resources containing zero carbon. Furthermore, FFI is driving the green industrial revolution. This is by creating technological solutions for sectors that are challenging to decarbonize. It is also amassing a global portfolio of projects utilizing renewable green hydrogen and green ammonia.

International hydropower leader Statkraft is also Europe’s biggest producer of renewable energy. The Group generates district heating, hydropower, wind, solar, and gas-fired power. Statkraft also operates in the global energy market and has 5,300 employees in 21 nations.