Sunday, 25 May, 2025
Norway is known for its rugged coastline, vast mountain ranges, and rich natural resources. The country has a relatively small population of approximately 5.6 million people. [1] As of 2025, Norway’s GDP is estimated at over USD 500 billion. [2]
Norway has long been a powerhouse in global energy markets, particularly due to its substantial oil and natural gas production from the North Sea. It is the second-largest exporter of natural gas in Europe, after Russia. [3] In 2022, Norway had an installed generation capacity of 41 GW. [4] Almost all of Norway's electricity comes from renewable sources. Hydropower was the main contributor, generating 128 TWh, while wind power produced 15 TWh. [5] As Europe's largest hydropower producer, Norway has historically relied on its abundant hydroelectric resources for electricity.
Statkraft AS, a fully state-owned company, is Norway's largest hydropower and energy producer and also Europe's leading renewable energy producer.
Figure: L-R: Norway Electricity Generation by Fuel, 2022 [6]
This renewable-rich energy mix gives Norway a unique advantage in developing green hydrogen. Unlike many other hydrogen-producing nations that must rely on fossil fuels or carbon capture, Norway can produce green hydrogen with nearly zero emissions from the outset.
[6] Country Analysis Brief: Norway
Norway is leveraging its extensive renewable energy resources to become a leader in green hydrogen production. It’s strong position in this field is supported by its advanced capabilities in both green and low-carbon blue hydrogen.
Norway's rich offshore and maritime history, combined with a century of hydrogen production experience, positions it well in the fight against climate change. One notable achievement is the MF Hydra, the world's first ferry powered by PEM fuel cells using liquid hydrogen, which can sail for 12 days on a single fuel load. This hydrogen is sourced from Linde's plant in Germany and stored in large cylindrical tanks on the ferry. [1]
New hydrogen ferries are being built for the challenging route between Bodø and Lofoten, expected to start operating in 2025. Additionally, companies like Nel and HydrogenPro are leading the way in manufacturing electrolysers for green hydrogen, while Statkraft, Europe's largest renewable energy supplier, is heavily investing in this technology. [2]
Norway's hydrogen strategy aims to transform the country into a low-emission society by 2050, targeting a 90-95 per cent reduction in greenhouse gas emissions compared to 1990 levels. The strategy emphasizes producing low-emission hydrogen primarily by renewable energy. It also focuses on developing efficient methods for converting, storing, and distributing hydrogen. [1]
The government is promoting hydrogen use across various sectors, including maritime, road transport, aviation, and railways, while ensuring safety through appropriate regulations. Hydrogen use in maritime and road transport is particularly emphasized, with plans for infrastructure development to support fueling needs. The strategy encourages hydrogen integration into the industry and energy sectors and supports national research and development to advance hydrogen technologies.
The Norwegian government actively supports hydrogen development through substantial funding for research, innovation, and pilot projects. One key initiative is the PILOT-E scheme, which is managed by the Research Council of Norway, Innovation Norway, and Enova. This scheme aims to accelerate the development and deployment of new, environmentally friendly energy technologies by creating comprehensive and efficient hydrogen value chains. [2]
Norway, presently, lacks a comprehensive legal and regulatory framework for hydrogen projects. This absence of a complete framework covering the entire hydrogen value chain makes navigating the regulatory landscape challenging. Additionally, the implementation of EU directives, such as the Renewable Energy Directive (RED II) of 2018, under the EEA Agreement, is currently a topic of debate within the Norwegian Government. [1]
Currently, hydropower accounts for over 90 per cent of Norway's electricity generation and will remain the backbone of its electricity system, even as its share decreases over time. The existing installed capacity of 34 GW is expected to gradually increase to 43 GW by 2050, with hydropower generation projected to reach 143 TWh by then. [1]
Wind power will play a growing role in Norway's energy transition, with an anticipated eightfold increase in capacity to 40 GW by mid-century. Norway is well-suited for wind power generation due to its long, inhabited, and grid-connected coastline with strong wind areas. [2] Norway has significant ambitions for offshore wind development, aiming to allocate areas for 30 GW of offshore wind production by 2040. [3] This includes both fixed-bottom and floating offshore wind technologies, with a particular focus on floating offshore wind due to its potential to harness strong wind resources in deeper waters.
Norway's solar capacity, which doubled to 0.6 GW in 2023, is expected to grow 30-fold to 18 GW by 2050. [4] However, solar panels produce less electricity in Norway than in more southern countries, due to the lower solar irradiance. That makes utility-scale solar power plants less profitable in Norway.
As of 2024, Norway does not have established facilities for manufacturing electrolysers, which are essential for green hydrogen production.
Together, these projects represent a total production capacity of 120 MW, equivalent to approximately 40 tonnes of hydrogen per day. The hydrogen produced from these sites is expected to be available by 2027.