December 18, 2025 [Energy News]- Fortescue Metals Group has revised the power purchase agreement for its Holmaneset green hydrogen and ammonia project in Norway, effectively postponing the plant’s operational start beyond 2029
The amendment, announced by Norwegian hydropower company Statkraft, converts the agreement into a 10-year supply deal while extending the timeline, marking a significant shift from the original 2027 target.
The 300-megawatt project, which combines renewable electricity with electrolysis to produce green hydrogen and derivative ammonia, has faced a protracted development phase. Fortescue initially planned to begin construction in 2025 with commissioning set for 2027, reflecting an early ambition to scale its European green hydrogen portfolio rapidly.
The delay comes amid a broader recalibration of Fortescue’s global green hydrogen strategy. The Australian mining giant has scaled back investment commitments outside its core iron ore operations, creating uncertainty for previously announced international projects. Adjusting the PPA with Statkraft provides more flexibility for both parties, ensuring that electricity supply and hydrogen off-take terms remain aligned with revised construction and commissioning schedules.
The Holmaneset project relies on Norway’s abundant hydropower to provide low-carbon electricity for electrolyzers, a key factor in producing hydrogen with near-zero emissions. Moving the start date past 2029 may affect market entry for hydrogen and ammonia in European decarbonization pathways, where earlier projects were expected to contribute to industrial and shipping fuel demand within the next decade.
By extending the PPA to a decade-long supply arrangement, Fortescue and Statkraft signal continued commitment to the venture while acknowledging the need for a more measured development timeline. The revision highlights the broader challenges facing early-stage green hydrogen projects in Europe, where financing, technology deployment, and market conditions interact to influence project timelines and commercial viability.
The amended schedule for Holmaneset will allow Fortescue to re-evaluate project design, optimize electrolyzer capacity, and coordinate integration with renewable electricity availability.
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