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Offshore substation and hydrogen factory

Arendals Fossekompani, KONGSBERG and Moreld join forces to develop a combined offshore substation and hydrogen factory.

Hydepoint will contribute to solving several challenges related to the development and upscaling of offshore wind power.

“Hydepoint is a complete solution for receiving, converting, and transmitting the full energy potential from offshore wind farms, with reduced dependence on the onshore power grid. Placed in the ocean, close to wind farms, Hydepoint can convert all or part of the energy into hydrogen. This will reduce the need for upscaling the power grid both to and on land,” explains Morten Henriksen, Executive Vice President at Arendals Fossekompani.

Demand for hydrogen produced from renewable energy is rapidly increasing. Utilization of offshore wind resources is also fast growing, and offshore wind is already an important source of new renewable energy globally. Further development of offshore wind, including the upcoming licensing round in Norway, will require significant strengthening of the power grid. A partial or full conversion of the energy to hydrogen, will reduce the need for grid investments and effectively increase production of hydrogen.

“Demand for hydrogen is already significant and expected to grow further. Hydrogen is utilized directly in several industries and will also be used for production of alternative energy carriers, such as ammonia and synthetic LNG. Green hydrogen, that is hydrogen produced based on renewable energy, will replace gray hydrogen, which is based on natural gas. This will have a positive environmental effect both short-term and long-term,” says Henriksen.

INCREASES COMPETITIVENESS OF OFFSHORE WIND

One of the challenges associated with wind power is of course variable production, from day to day and hour to hour. With an increased share of offshore wind in the energy mix, production is as some point likely to exceed the need or capacity of the transmission lines to land, and also the onshore power grid.

“KONGSBERG already has significant activities in offshore wind, offering solutions that enable efficient development and operation of offshore wind. For offshore wind to work in complex energy systems, it is crucial to ensure attractive and robust solutions for energy conversion, storage, and management. Hydepoint contributes to solving these challenges by allowing surplus power to be converted directly to hydrogen offshore. Hydrogen can be stored, transported, and used alternatively,” says Geir Håøy, CEO of KONGSBERG.

BUILT ON STANDARDIZED SOLUTIONS

Hydepoint is based on the development and qualification of standardized and scalable solutions. Thus, Hydepoint will contribute to reduced costs in the global large-scale build-up of offshore wind that is planned over the next 20 to 30 years.

“There is a great potential for reducing costs through solutions that can be industrialized, standardized and built in large numbers. Hydepoint will offer fully developed substations where both costs and delivery time are significantly reduced,” says Geir Austigard, CEO of Moreld.

COMPLEMENTARY COMPETENCE AND MARKET POSITIONS

Arendals Fossekompani, Kongsberg Gruppen and Moreld are industrial partners who will be equally large owners of the new company Hydepoint AS. Moreld contributes with offshore infrastructure solutions, KONGSBERG contributes with power and management systems, and Arendals Fossekompani contributes with solutions for optimized planning and operation through its in-depth knowledge of the power market, including through the portfolio company Volue.

The collaboration is based on an initiative from Kjell O. Johannessen, an experienced entrepreneur, a former leader of the oil and gas cluster NODE, and leader of the industrial network Green Energy Network. Johannessen will have a smaller ownership interest in the company.

“Hydepoint is developed primarily as a floating concept that can easily be scaled in size and number. It solves several challenges related to offshore wind power and ensures the robustness and flexibility necessary to be implemented with reduced requirements for local infrastructure and value chains. Hydepoint is highly scalable and may very well become a global export item,” says Johannessen.

FOR MORE INFORMATION:

Morten Henriksen, EVP at Arendals Fossekompani, phone: +47 916 28 871
Karsten Gudmundset, EVP at Moreld, phone +47 909 23 586
Ronny Lie, Chief Communications Officer, phone: +47 916 10 798

ARENDALS FOSSEKOMPANI

Arendals Fossekompani (AFK) is a green-tech investment company that owns energy- and technology-related companies which enable the transition to a green economy. AFK operates globally in several future-oriented industries, including 3D printing, algo trading, satellite services, battery- and solar technology, software, and digitization. Established in 1896, AFK has been a proud producer of renewable hydro power for more than 100 years. The company is headquartered in Arendal, Norway and listed at the Oslo Stock Exchange.

MORELD GROUP

Moreld is an industrial technology company that provides services and technology to the energy sector with a strong position in the marine and offshore industry. We develop smart and sustainable solutions for our customers that help enable the green shift. By 2026, the company aims to have over 40% of sales from new segments, such as offshore wind and hydrogen. Moreld has approximately 3,000 employees and NOK 6 billion in annual turnover, and is owned by HitecVision.

KONGSBERG

KONGSBERG (OSE-ticker: KOG) is a leading global technology corporation delivering mission-critical systems and solutions with extreme performance for customers that operate under extremely challenging conditions. We work with nations, businesses and research environments to push the boundaries of technology development in industries such as space, offshore and energy, merchant marine, defence and aerospace, and more. KONGSBERG has about 11,000 employees located in more than 40 countries, creating a total revenue of NOK 27.5bn in 2021.