Aker Horizons and Statkraft Partnering to Explore Green Hydrogen and Ammonia Opportunities in India and Brazil

OSLO,Norway,April 26,2022 -- Aker Horizons,through its portfolio company Aker Clean Hydrogen,and Statkraft have signed collaboration agreements to jointly explore opportunities for green hydrogen and ammonia production in India and Brazil,targeting local steel and fertilizer industries.

The collaboration brings together Aker Clean Hydrogen,a global integrated hydrogen,ammonia and methanol producer building on Aker's 180 years of industrial heritage,and Statkraft,a leading developer and generator of renewable energy with a substantial experience and presence in India and Brazil.

"We are excited to join forces with Statkraft to accelerate the transition from grey to green solutions in India and Brazil," said Knut Nyborg,Chief Executive Officer of Aker Clean Hydrogen. "The potential environmental benefits from decarbonizing hard-to-abate industries like the steel and ammonia industry in India and the fertilizer industry in Brazil are substantial. Both India and Brazil are large consumers of hydrogen,have supportive governmental policies and benefit from world-class renewable energy resources,which offers significant opportunities for green hydrogen and ammonia production."

Emissions from the steel and ammonia industries contribute to close to 9 percent of the global greenhouse gas emissions and are classified as hard-to-abate sectors. Green hydrogen provides an emission-free alternative to decarbonizing these industrial sectors and an opportunity to increase security of supply of the two commodities.

Cooperation in India

Aker Clean Hydrogen and Statkraft have agreed to explore joint development opportunities of fully-integrated renewable power generation and green hydrogen production in India,targeting domestic hard-to-abate industries such as the steel industry,as well as ammonia for domestic use and export. The steel industry in India produces about 100 million tonnes of steel annually. In India,green hydrogen can be used to replace grey,fossil fuel-based hydrogen,coal and natural gas as fuel and feedstock. This will significantly reduce CO2 emissions,while bolstering the country's energy security,making it less vulnerable to energy market volatility.

India currently consumes approximately 7 million tonnes of grey hydrogen per year,making it the world's second largest hydrogen consumer. The country's current hydrogen demand is expected to reach approximately 12 million tonnes by 2030 and about 28 million tonnes by 2050. India's commitment to reach net zero by 2070,announced during the 26th UN Climate Change Conference,will further increase green hydrogen demand in one of the fastest growing economies in the world.

Cooperation in Brazil

In Brazil,Aker Clean Hydrogen,Statkraft and Sowitec,a company specializing in developing renewable wind and solar assets,aim to jointly develop power-to-X projects in the state of Bahia. The first project opportunity being pursued is a large-scale hybrid project,which combines renewable power generation,and hydrogen and ammonia production for the local fertilizer industry.

Brazil is the world's fourth largest consumer of fertilizers,accounting for about 8 percent of global demand. Currently,the country imports more than 80 percent of its consumption. Recently the Brazilian government enacted their 2022-2050 National Fertilizer Plan,seeking to reduce the Brazilian dependency on imported fertilizers by,amongst other means,attracting and supporting foreign investments.

The state of Bahia has favorable renewable resources from wind and solar and a strong agricultural industry that imports large amounts of grey,fossil fuel-based fertilizers. Replacing imported grey ammonia with locally-produced green ammonia will support the decarbonization of the local agricultural industry and reduces import dependency,while creating new green industrial opportunities. The project is scheduled to be in commercial operation by 2027.

"With considerable renewable energy production and market activities in India and Brazil,Statkraft is well positioned to capture green hydrogen opportunities in these two huge and important energy markets. Developing such opportunities helps us grow our business and reduces greenhouse gas emissions in India and Brazil," said Jürgen Tzschoppe,Executive Vice President International Power of Statkraft.

Investor contact:

Christian Yggeseth,mob: +47 915 10 000,email: christian.yggeseth@akerhorizons.com

Media contact:

Mathias Nilsen Reierth,mob: +47 988 05 724,email: mathias.reierth@akerhorizons.com

Ivar Simensen,mob: +47 46 40 23 17,email: ivar.simensen@akerhorizons.com

About Aker Clean Hydrogen

Aker Clean Hydrogen aims to develop,build,own and operate clean hydrogen production on an industrial scale. Aker Horizons is the majority shareholder of the company,and Aker Clean Hydrogen uses domain expertise across the Aker group,including systems integration,engineering,technology development,project implementation,digitalization and financial optimization to increase efficiency and reduce project costs. The company aims to reach a net installed capacity of 5 GW by 2030,and will make a major contribution to realizing the hydrogen industry and reducing greenhouse gas emissions globally.www.akercleanhydrogen.com

On 30 March 2022,Aker Clean Hydrogen and Aker Horizons announced a merger plan that will reposition Aker Clean Hydrogen as a privately held subsidiary of Aker Horizons. The merged entity will continue serving the fast-growing global markets for hydrogen,ammonia and methanol,building on ACH's portfolio of projects to decarbonize hard-to-abate sectors.

Completion of the merger is subject to customary closing conditions,including approval by the shareholders of ACH and the Board of Directors of Aker Horizons resolving to issue the consideration shares pursuant to a board authorization. Aker Horizons has undertaken to vote in favor of the merger at ACH's annual general meeting scheduled on 4 May 2022.

About Aker Horizons

Aker Horizons ASA is a planet-positive investment company dedicated to developing companies within renewable energy and other technologies that reduce emissions or promote sustainable living. The company is listed on the Oslo Stock Exchange and majority-owned by Aker ASA. Aker Horizons' investment portfolio includes Aker Carbon Capture,Aker Offshore Wind and Mainstream Renewable Power. www.akerhorizons.com

About Statkraft

Statkraft is a leading company in hydropower internationally and Europe's largest generator of renewable energy. The Group produces hydropower,wind power,solar power,gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 4,800 employees in 19 countries. www.statkraft.com

About SOWITEC

As one of the leading global project developers for renewable energies,SOWITEC is active in 14 countries with a focus on the rapidly growing emerging and developing countries. With almost 160 employees,SOWITEC covers all areas of solar and wind power project development: from planning and conception,energy and profitability calculations,through construction management,sales and financing to the technical and commercial management of wind and solar parks. More than 60 wind and solar projects with over 3,100 MW developed by SOWITEC are currently in operation or under construction in eight countries,while additional 2,000 MW have been sold to final investors and are currently under final structuring. www.sowitec.com

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