The Norwegian Government’s hydrogen strategy
The Norwegian Government’s hydrogen strategy identifies several priorities to be developed, to make hydrogen an opportunity for value creation, in areas in which Norway has competitive advantages. The Strategy considers hydrogen a potential zero emission alternative. Hence, it must become technologically and financially accessible, as costs of energy, emission and storage for hydrogen are not competitive yet, compared with some of the fossil fuels.
The following are the priorities of the Strategy.
Technology development: the supply side will benefit a technology development, as it would reduce production costs. The government will support an increasing number of pilot and demonstration project in Norway, through policy instrument that promote zero emission technologies.
Competitive production of clean hydrogen: to make clean hydrogen production more competitive, actual electrolysis plant costs need to decrease and the conversion facilities from electricity to hydrogen need to become more efficient. Carbon Capture and Storage (CCS) facilities will also be developed in Norway.
Emission-free transport: the same tax break and user benefit schemes adopted for electric vehicles apply for hydrogen vehicles, so as to make the transport sector carbon neutral. NOK 25 million was allocated to assist county authorities in the promotion of zero or low-emission ferries. In 2020, NOK 80 million was set aside for the same purpose.
Green public procurement: the government aims at increasing public procurements on climate-friendly projects and on green innovation, in particular in the transport sector.
Safety and standards: new technologies and systems need to be safe for the government to adopt it. Hence, it will work on regulations and standards in line with technological and market development.
National research: in the transition towards a low-emission society, the government will focus on funding Norwegian research communities, already engaged in hydrogen-related technology. As a consequence of the COVID-19 pandemic, the government proposed a NOK 120 million grant to the Research Council of Norway’s ENERGIX programme. The aim is to develop hydrogen-related technologies for the Norwegian market.
International collaboration and research: clean hydrogen markets and technology development are mainly coming from outside Norway. The government is working to facilitate international participation for the development of hydrogen as a decarbonisation solution.
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