The Ireson plant will use 270MW of electrolysis, powered by hydropower, to produce 200,000 tonnes of green ammonia per year for maritime offtakers. Capacity could be expanded in later phases.

Backed by Copenhagen Infrastructure Partners, the project is expected to be operational by 2029.

Hy2Gen said it will now begin technical development before looking to make a final investment decision.

Hege Økland, CEO of Iverson eFuels and head of Hy2gen’s Nordic subsidiary, said the zonal approval was a “crucial step forward.”

“We look forward to constructive dialogue and close cooperation with the municipality, local businesses, and the community,” she added.

The milestone comes after Hy2Gen secured €47m ($55.2m) from existing shareholders to progress its 2GW hydrogen and derivatives portfolio in a round led by Hy24.

In May, the firm secured RFNBO certification for its 6.3MW green hydrogen and e-methane in Germany, which was acquired from Kiwi AG in 2023.