A planned ammonia plant in Norway has been scrapped, with the company behind the project looking towards data center use instead. The pivot comes after delays to the ammonia plant saw the project lose its allocation with the local grid operator.

Iverson eFuels has decided to terminate plans for a green ammonia plant in Sauda due to the withdrawal of allocated grid capacity and uncertainty regarding future access,” Iverson eFuels said this week. “The company regrets the decision, thanks its partners, and will now consider the possibility of establishing a data center to create new activity in Sauda.”

Iverson, owned by hydrogen firm Hy2Gen and investment company Copenhagen Infrastructure Partners, had been working on plans for an ammonia factory at Birkeland in Sauda since 2021. Originally due to launch in 2027, the site was later scheduled to launch in 2030 and then pushed back again to 2031.

The 20-hectare plant was set to produce 200,000 tonnes of green ammonia. It was set to feature a 240MW electrolysis unit to produce green hydrogen on land previously owned by the municipality.

The project was approved by the municipal council last year. However, Iverson said that before Christmas, Norwegian grid operator Statnett had withdrawn the 270MW of previously allocated grid capacity due to the project being more than two years behind schedule.

“Statnett has stated that new capacity can only become available when the new upgraded grid is completed, expected in the period 2033–2035,” the company said. “For Iverson, such an unresolved situation related to the completion of new network capacity is not compatible with further development of the project. On this basis, Iverson has decided to terminate the project concerning green ammonia production in Sauda.”

In lieu of the ammonia plant, Iverson said it will look into establishing a data center, so that the “work and resources invested in the Iverson project can be put to good use and contribute to creating new business in Sauda.”

Sauda is a municipality in Rogaland near the west coast of Norway. It is some 148km south of Stavanger and 200km south of Bergen.