2024 - a year of optimism and concern

Sverre Gotaas reflects on 2024 and looks ahead with both optimism and concern.

"The external conditions around us are challenging to influence significantly, but we are doing our best to make an impact. Limited energy supply, the war in Ukraine, uncertainty surrounding the EEA agreement, the EU, and the US presidential transition – these are all factors affecting us," says Gotaas.

"We are focusing on developing more and better services for both existing businesses in the industrial park and potential newcomers to Herøya. New ideas and fresh thinking will be crucial going forward."

Projects delayed

Several major planned projects have been postponed for various reasons.

"We see an uncertain market, with projects being delayed and longer lead times before construction begins," Gotaas explains. "The global hydrogen sector isn’t progressing as quickly as hoped, which has led companies like NEL and HydrogenPro to adjust their production accordingly."

Positive developments

Despite the challenges, 2024 also brought positive developments.

LanzaTech and Eramet have signed an agreement to utilise exhaust gases from Eramet, which contain CO₂, leading to the construction of a new factory in the industrial park. "We are eagerly anticipating this and expect a final decision in 2025," Gotaas says.

"Another highlight is Vianode opening its plant and securing a major contract with GM in the US. This strengthens the future of Vianode’s Herøya facility," he continues, noting that Vianode will need to refine its production in collaboration with GM and other clients, reinforcing the necessity of their presence at Herøya.

"It’s also great to see Hydro expanding its R&D activities here. The expertise and environment at Herøya are clearly attractive to Hydro as they develop their products and factories further."

"Another exciting addition is Thor Medical, which is establishing a new value chain in nuclear medicine. This could create many promising job opportunities and industrial prospects. Meanwhile, REEtec is preparing to launch its new plant for rare earth elements, a development well aligned with future plans for the Fens field at Ulefoss," Gotaas adds.

Preparing for more uncertain times

"We are gearing up for a more unpredictable future. A great deal of internal work is underway to adapt to a rapidly changing world," says Gotaas. "What concerns our tenants also concerns us."

He highlights energy prices and supply as major issues. "This is critical, especially now that the green transition is under pressure. The incoming US president has a different stance on green policies compared to the previous administration, which has shaped decisions across much of the Western world. If the Trump administration rolls back renewable energy initiatives and reverses the Inflation Reduction Act (IRA), we could see industrial projects returning to Europe and Norway instead."

Gotaas is clear on EU. "Europe must stand together and navigate this new reality. This will be challenging, particularly as Norway remains outside the EU and is not involved in discussions on trade conflicts with the US and the war in Ukraine, both of which have significant impacts on us," he notes.

Gotaas also expresses concern over increasing pressure on the EEA agreement. "There’s too much debate over whether the EU benefits us. The EEA agreement is essential for many businesses at Herøya. From our perspective, its value is undeniable. Now is not the time to question such fundamental agreements. Instead, we must stand united with the rest of Europe. The political climate is genuinely worrying."

Energy challenges persist

Gotaas remains focused on the state of the energy system.

"Electricity prices, which reflect the state of the power system, are another major concern. Beyond external factors, this is what worries me most on a national level."

He elaborates: "Statnett has added capacity to the region, and some businesses have reduced their energy consumption, creating opportunities for new and existing players. However, the surrounding grid is too weak. If energy demand increases in this constrained area, costs will rise significantly, making industrial operations less viable."

"I also fear that more agile businesses with faster decision-making and greater financial flexibility will take the lead. This could shift energy consumption towards new, power-intensive industries like data centres," he warns.

"Could a data centre be established at Herøya?"

"We have no plans for that," Gotaas responds. "We lack the land and facilities for data centres and have other priorities. But I’m fairly certain other actors in the region have received inquiries."

Exciting times ahead

Internally, significant work is being done to streamline operations and develop new products and services for industrial park tenants.

"We have limited available land, so we are enhancing our infrastructure and making Herøya even more attractive for businesses. Improving infrastructure and expanding our expertise base are key priorities."

Through the government-backed Katapult Programme, Herøya Industripark AS is fostering the growth of small and medium-sized enterprises (SMEs), opening up exciting opportunities for the future.

Tenant selection

Herøya Industripark AS is entering a phase where it must be more selective about future tenants.

"To establish your business here, you should either contribute products or services that benefit the industrial park or make use of existing resources. Completely new industries or unfamiliar value chains will now face stricter evaluation."

LanzaTech is a prime example. "They will capture CO gas from Eramet and convert it into useful products. We are eagerly awaiting their final decision to build the factory. Preparations have already begun, including the demolition of old buildings on the proposed site."

Long-term plans

Herøya Industripark AS remains committed to long-term development.

"Our owner, OPF, continues to believe in Herøya’s potential. That’s why we are actively pushing forward with long-term plans. After 100 years here and tenant agreements extending until the end of the century, our vision for the future remains strong," Gotaas concludes.