Floating Factories: How Norway is Cracking Europe's Hydrogen Future

STORD, Norway – July 02, 2026

In a quiet pilot plant on the Norwegian coast, a critical piece of the future energy puzzle has just clicked into place. Maritime infrastructure giant Höegh Evi and technology partner Nord Gas Solutions have successfully validated a system that efficiently “cracks” ammonia into high-purity hydrogen. While the chemistry is complex, the implication is simple: the biggest logistical barrier to a global hydrogen economy—transportation—may now have a viable, scalable solution.

The successful tests in Stord confirmed that a modular cracking unit can be installed on floating terminals, effectively creating mobile hydrogen factories. These vessels can receive shipments of ammonia—a stable, easily transportable chemical—and convert it into hydrogen gas on-site at industrial ports. The process achieved a hydrogen purity level exceeding 99.5%, a crucial benchmark for use in fuel cells and sensitive industrial applications. This development isn't just a technical achievement; it's a pragmatic blueprint for how Europe can meet its ambitious clean energy import goals.

The Ammonia Bridge: Cracking Hydrogen's Toughest Problem

For years, hydrogen has been hailed as the clean fuel of the future, but its physical properties have kept that future at a distance. As the lightest element, hydrogen is notoriously difficult to store and transport in large quantities. Liquefying it requires cryogenic temperatures of -253°C, an energy-intensive and costly process. Compressing it as a gas yields low volumetric energy density, making long-haul shipping impractical.

This is where ammonia (NH₃) enters the picture. By combining hydrogen with nitrogen from the air, a process known as the Haber-Bosch process, hydrogen can be converted into a far more manageable liquid. Ammonia can be stored and transported at a moderate -33°C or under modest pressure at ambient temperatures. Crucially, a robust global infrastructure for producing and shipping millions of tonnes of ammonia already exists, primarily for the fertilizer industry. Ammonia thus acts as an ideal “hydrogen carrier,” allowing clean energy produced in sun- and wind-rich regions to be shipped across oceans to demand centers in Europe and Asia.

The challenge has always been getting the hydrogen back out efficiently at the destination. The process, known as ammonia cracking, involves heating NH₃ over a catalyst to decompose it back into hydrogen (H₂) and nitrogen (N₂). Historically, this has been an energy-intensive process requiring high temperatures, and the catalysts involved have faced issues of cost and stability. The recent validation by Höegh Evi and Nord Gas Solutions signals a significant step forward in overcoming these hurdles.

"Höegh Evi is very pleased with the testing results of our ammonia-to-hydrogen cracker, which has demonstrated high performance, stability and efficient conversion from ammonia to hydrogen," said Nils Jakob Hasle, EVP Clean Energy at Höegh Evi. "This milestone further confirms the case for floating terminals as a fast and competitive path to implementing hydrogen at scale."

A Floating Revolution in Energy Infrastructure

The true innovation here lies not just in the cracking chemistry, but in its application. By packaging the technology into a modular unit designed for a floating terminal, the project bypasses the immense time and cost of building permanent onshore facilities. European ports are already congested, with limited land available for new, large-scale industrial plants. Floating terminals offer a nimble, space-efficient alternative.

Höegh Evi, a company with 50 years of experience operating one of the world's largest fleets of Floating Storage and Regasification Units (FSRUs) for natural gas, is leveraging its deep maritime expertise. The concept is an evolution of their proven FSRU model: a vessel moors at a port, receives liquid fuel from carriers, and converts it into a usable gas for the local grid. In this case, liquid ammonia is converted to hydrogen gas.

The company is developing terminals capable of delivering up to 200,000 tonnes of hydrogen per year—a truly industrial scale. This capacity is vital if Europe is to meet its REPowerEU target of importing 10 million tonnes of renewable hydrogen by 2030. These floating terminals can provide a stable, baseload supply of hydrogen directly into emerging European pipeline networks.

"This successful testing phase marks an important milestone in validating ammonia cracking as a reliable and scalable pathway to hydrogen," stated Taro Mukae, VP Technology at Nord Gas Solutions. "The results confirm both the efficiency and operational robustness of our technology, supporting its readiness for deployment in industrial-scale applications."

The Collaborative Engine Behind the Breakthrough

This achievement was not the work of two companies alone but the result of a strategic consortium backed by the Norwegian government. The project received approximately €5.9 million from the Norwegian Green Platform programme, a national initiative designed to accelerate the country's green industrial transition. This public-private partnership model is proving essential for de-risking and fast-tracking capital-intensive clean energy technologies.

Each partner brought a critical piece to the puzzle. Nord Gas Solutions, formerly Wärtsila Gas Solutions, provided the core gas handling and process technology. Chemical giant BASF contributed its advanced catalyst, the secret sauce that enables the cracking reaction to occur efficiently. The entire system was built and tested at the Sustainable Energy catapult centre in Stord, a facility designed for exactly this kind of validation of new energy systems.

Academic and research institutions also played a vital role. The University of South-East Norway and the Norwegian Institute for Energy Technology (IFE) provided research support, with IFE focusing on developing advanced catalysts and purification methods. This collaboration between industry, government, and academia created an ecosystem capable of turning a theoretical concept into a validated, commercially viable technology.

Navigating the Path to a Hydrogen-Powered Europe

With the technology now proven, the focus shifts to commercial deployment. Höegh Evi is already progressing with the development of several maritime hydrogen terminals across Europe, aiming for a Final Investment Decision (FID) by the end of 2025. The success of these projects will hinge on the availability of competitively priced green ammonia—ammonia produced using renewable electricity. Industry analysis suggests that 80-90% of the final cost of the hydrogen will be determined by the cost of the ammonia feedstock, making the cracker's capital cost a smaller part of the equation.

While this project represents a significant leap forward, the path is not without challenges. Safety protocols for handling large volumes of ammonia in a marine environment must be rigorously maintained, though the industry has decades of experience to draw upon. Regulatory frameworks for hydrogen imports and infrastructure are still maturing, but the EU's clear political targets provide a strong tailwind.

Höegh Evi and its partners now move toward long-term testing to further validate the system's durability and performance. As they do, they are laying the groundwork for a tangible, sea-based supply chain that could finally connect the world's renewable energy resources to its industrial heartlands, powered by hydrogen.