Norway Moves Ahead with Two 20 MW Green Hydrogen Plants as Hyfuel and Kaupanes Projects Enter Construction Phase

Norway’s hydrogen industry has taken a major step forward as the Hyfuel (Florø) and Kaupanes Hydrogen (Egersund) projects have both reached final investment decision (FID) and are now set to begin construction. Each facility will deliver 20 megawatts (MW) of green hydrogen production capacity, supporting the maritime sector, transportation, construction, and industrial users across Norway and the wider Nordic region.

Together, these projects mark an important milestone in scaling up Norway’s green hydrogen infrastructure, providing a competitive, zero-emission energy source for applications where direct electrification is not yet viable.

From Concept to Construction

Over the past year, HYDS, in close collaboration with its co-owners and technology partners, has successfully completed commercial structuring, permitting, detailed engineering, and major equipment procurement for both projects. With financing and key contracts in place, the projects are now advancing into the execution phase.

NEL Hydrogen has been selected to supply the electrolyzers, ensuring proven, high-efficiency hydrogen production technology. Engineering, installation, and commissioning will be carried out by Moreld Apply, further strengthening Norwegian industrial participation and local value creation.

Strengthening Norway’s Hydrogen Value Chain

As demand for green hydrogen accelerates across industries such as maritime transport, heavy mobility, and construction, early large-scale projects like Hyfuel and Kaupanes are essential to establishing a robust hydrogen value chain in Norway. These facilities will help reduce emissions in hard-to-abate sectors and contribute directly to national and European climate and energy goals.

“These projects mark a defining moment for Norway’s hydrogen economy,” said a spokesperson for HYDS. “We are now moving from development to delivery — from plans on paper to tangible production capacity that will enable the transition to clean, renewable fuels.”

Local Ownership and Lasting Impact

Hyfuel AS, located at the Fjord Base supply hub in Florø, is owned by HYDS, Sogn og Fjordane Energi AS, and Fjord Base Holding AS.
Kaupanes Hydrogen AS, situated in the Kaupanes industrial area of Egersund, is owned by HYDS, Dalane Energi AS, and Eigersund Næring og Havn KF.

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Both projects are designed to create local jobs, strengthen regional industry, and showcase Norway’s capability to lead in renewable hydrogen production.

Once operational, the two plants will form a cornerstone of Norway’s growing hydrogen infrastructure, supplying clean, domestically produced hydrogen that supports sustainable industry and transport across the Nordics.

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