Hydrogen Pro has its head office in Porsgrunn, but is currently planning a brand new factory in Texas, USA. The reason is simple. There, the industry receives significant tax and duty relief. – Today it is out of the question to set up fabrication and production in Norway, says Tarjei Johansen, managing director of the company. Wants Norwegian support schemes In the USA, they have stepped up the pace to seriously reach the climate targets. In August, President Joe Biden launched a climate package that helps business to adapt and cut emissions. Also known as The Inflation Reduction Act (IRA). In short, the aim of the agreement is to deal with climate change in time. Joe Biden, President of the United States. Photo: Susan Walsh / AP This also benefits foreign companies, such as Hydrogen Pro from Porsgrunn in Norway. They produce electrolysers, a device that makes green hydrogen. The company, which was started in 2013, has experienced great growth in recent years. They have grown from ten employees at the start, to over 200 today. For them alone, Biden’s climate package means demand in the billions. In a short time, the company will therefore open a new factory in the USA. At the same time, this means close to 200 new jobs. Jobs that could potentially be in Norway, if the conditions were right for it. It doesn’t do that today, says Johansen. Hydrogen Pro has its head office in Porsgrunn, but is currently planning a brand new factory in Texas, USA. Photo: Lars Tore Endresen / news – It is out of the question. We see that there are other places, such as the USA, where arrangements are made for suppliers to the green industry. That makes it much more attractive to set up there, he says to news. In Norway, it is therefore more attractive to invest in American projects than to produce at home. – We see a tendency for jobs in Norway to disappear, says Johansen. The Porsgrunn company is not alone. Last week it became known that Norwegian Nel is also planning a large factory in Michigan, USA. The reason is the same. This is The Inflation Reduction Act (IRA). The IRA was passed by a democratic majority in Congress, and signed by President Biden on 16 August 2022. The legislative package will, among other things, contribute to a green transition and emission cuts in the USA over a 10-year period. The IRA is described by several as a turning point for green transition, with significant subsidies that have a direct impact on investments and existing production in a number of green value chains. Source: NHO More predictability “across the pond” Yara is already well established in the USA, and also benefits from the new support schemes. – The most important thing about the US’s plan is that it is so predictable, says Edina Ringdal Wickholm. She is director of decarbonisation at Yara. Edina Ringdal Wickholm, decarbonisation director at Yara. Photo: Lars Tore Endresen / news Support is only given for actually completed projects through the IRA. – This means that you have to produce the green hydrogen or store CO₂ before you get support. But if you implement this, you are also guaranteed support, she says. – We are a company that will make major investments in the green shift. More predictability and a safer framework would have been very good. The industry now hopes that Norway will be inspired by Biden’s method, but Wickholm emphasizes that there is, after all, a lot of positive things going on here at home as well. – We see that a lot is being done in the EU and Norway to meet the new reality. We hope for a regime that makes it easier to make the same investment decisions here. We would like to invest in Norway too, she emphasizes. – Do far more in Norway Monday was the start of the industry week in Porsgrunn. Industry Minister Jan Christian Vestre (Ap) was also present. Jan Christian Vestre (Ap), Minister of Industry. Photo: Simon Skjelvik Brandseth He does not fear investment leaks from Norway to the USA as a result of the IRA. – It is very good that the Americans have finally joined the climate fight. If you compare the size of the American economy with the Norwegian one, we are doing far more in Norway to accelerate the green shift, he believes. Vestre mentions grants, loans and guarantees in the green energy transition as examples. – We are also going to strengthen our instruments to attract even more investment to Norway, he says. If large companies are to invest in Norway, better support schemes are required. After Joe Biden launched the IRA to achieve the climate goals in the US, many companies are looking across the pond. Photo: Ole Berg-Rusten / NTB The Minister of Trade believes that “the Norwegian way” is still the best way to go in order to strengthen the country’s competitiveness. – In Norway, we have competed to be the best in subjects, restructuring and getting the most out of resources. That is our recipe for success. We have been on this high-speed train for a long time, says Vestre. Wickholm in Yara believes that now is the chance to get on with the train. – Norwegian industry must make some active choices now. The next fifty to sixty years will be determined by the investments made in the near future, she believes.
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Fears for the future of Norwegian industry because of the IRA – news Vestfold and Telemark – Local news, TV and radio
