Norway Energy Storage Outlook

Norway is at the forefront of energy storage innovation, leveraging its rich hydropower heritage and cutting-edge technologies. Renowned for its extensive hydropower infrastructure, the country utilizes reservoirs as dynamic energy stores, harnessing surplus electricity during low-demand periods and releasing it when needed to ensure grid stability. Complementing this tradition, Norway has made significant investments in battery storage systems, propelled by the rapid growth of electric vehicles. Repurposing used EV batteries for stationary storage bolsters the nation's energy resilience. Furthermore, Norway pioneers the exploration of hydrogen as a versatile energy carrier, capitalizing on abundant renewable resources for green hydrogen production. Norway is advancing hydrogen utilization across industries and energy storage applications by piloting various initiatives. Fueled by a culture of research and innovation, collaborations between academia, research institutions, and industry stakeholders drive continuous improvements, addressing challenges and pushing boundaries in energy storage efficiency, grid integration, and cost-effectiveness

INTRODUCTION

General Information:

Norway is a Nordic country in Northern Europe, known for its fjords, mountains, and glaciers. The country is sparsely populated with a high standard of living. The country shares a long eastern border with Sweden. It is bordered by Finland and Russia to the northeast and the Skagerrak strait to the south. Norway is a wealthy nation due in part to its large oil reserves. Norway is home to the Nobel Peace Prize. The country has a very high rate of electric vehicle ownership. Norway is considered one of the happiest countries in the world.

Capital: Oslo

Population: 5.4 million (as of 2023)

Official Language: Norwegian Bokma?l and Nynorsk

Currency: Norwegian Krone (NOK)

Government: Parliamentary constitutional monarchy

Economy: Norway has a mixed economy with a large public sector, universal healthcare, and free college education. The country is the world's largest producer of non-OPEC oil and gas exports, and these exports account for a significant portion of its GDP. Norway also has a strong welfare state, which provides a social safety net for its citizens.

Main Energy Resources and Renewable Energy Sources:

Norway's energy resources are predominantly focused on hydroelectric power, petroleum (oil and gas), and more recently, investments in renewable energy sources like wind power and solar energy. The country is unique in its capacity to balance substantial oil and gas production with a commitment to sustainability and environmental protection. Here's an overview of Norway's main energy resources:

Hydroelectric Power

• Dominance in Energy Mix: Hydroelectric power is the backbone of Norway's domestic electricity production, contributing around 90-98% of the country's total electricity generation.
• Export: The surplus electricity generated from hydroelectric power is often exported to neighboring countries, making Norway a significant player in the Northern European energy market.

Petroleum (Oil and Gas)

• Global Supplier: Norway is one of the world's largest exporters of oil and natural gas, playing a crucial role in the global energy market. The North Sea, the Norwegian Sea, and the Barents Sea are key areas for exploration and production.
• Government Management: The sector is tightly regulated, with the government owning significant stakes in key petroleum companies (such as Equinor, formerly known as Statoil) and managing resources through policies aimed at sustainability and economic stability.
• Sovereign Wealth Fund: Revenues from petroleum activities are channeled into the Government Pension Fund Global (often referred to as the Oil Fund), which is the world's largest sovereign wealth fund. This fund invests in international financial markets, intending to manage the wealth for future generations and mitigate the effects of fluctuating oil prices.

Renewable Energy (Beyond Hydroelectric Power)

• Wind Power: Norway has been increasing its investments in wind power, with several onshore and offshore wind farms. The country's long coastline and high altitude plateaus offer favorable conditions for wind energy production.
• Solar Energy: While solar energy is less developed in Norway compared to wind and hydro, there is growing interest in solar power for both residential and commercial use, particularly in areas with more sunlight exposure.

Sustainability and Future Directions

• Norway aims to reduce its carbon footprint and transition to a more sustainable energy system. This includes electrifying the transportation sector, investing in battery technology, and exploring carbon capture and storage (CCS) technologies.
• The country also aims to balance its role as a major oil and gas producer with its commitment to the Paris Agreement on climate change, seeking ways to reduce emissions both domestically and from its petroleum sector.

Norway's approach to managing its energy resources is often cited as a model for combining economic development with environmental stewardship, leveraging its natural resources to create a prosperous yet sustainable future.

Norway’s Electricity:?

Norway presently has 32 GW installed capacity in the hydropower system and 85 TWh reservoir storage, providing 97 percent of its electricity supply. Studies have shown that it is possible to develop an additional 20 GW of new capacity in the Norwegian hydropower without the construction of additional reservoirs.

Norway’s Energy Storage Industry

Norway's energy storage facilities predominantly leverage its extensive hydroelectric power infrastructure, which inherently acts as a large-scale energy storage system. Besides traditional hydroelectric storage, Norway is exploring and investing in other energy storage technologies and facilities to enhance grid stability, integrate more renewable energy, and maintain its leadership in sustainable energy systems.

While Norway boasts a robust renewable energy sector dominated by hydropower, large-scale dedicated energy storage facilities are still in their early stages of development. Here's a breakdown of the current situation and future prospects:

Pumped Hydro Energy Storage?

Pumped hydroelectric storage is the primary method of energy storage in Norway, utilizing the country's abundant hydro resources. This technology pumps water from a lower reservoir to a higher reservoir when there is excess electricity (often during periods of low demand or high renewable production). The stored water is then released back down through turbines to generate electricity when demand is high or renewable energy generation is low.

The historical development of hydropower and PSPs in Norway is closely related to its industry development. All ten PSPs are located in Central and West Norway. The first PSP in Norway is the 11 MW Brattingfoss power plant set in operation in 1955. This PSP was constructed for seasonal pumping in a hydropower scheme where the largest reservoir is on top of the scheme. Between 1962 and 1979, another five PSPs were built in Norway, with an installed capacity ranging from 35 MW to 270 MW. ?

Currently, Norway is 10th in Europe in terms of pumped storage installed capacity, with 1369 MW, leaving it with a high pumped hydro development capability, as Norwegian reservoirs equivalate nearly 87 TWh (corresponding to 70% of annual Norwegian electricity consumption) of energy storage, with 10–20 TWh of available capacity most of the time. Over 70% of hydropower plants have storage reservoirs.?

The largest PSP is the 640 MW Saurdal PSP (320 MW pumping), set in operation in 1985, as part of the Ulla-F?rre hydropower scheme

All schemes are open loop schemes with natural inflow and have in sum a gross energy production of 2.6 TWh per year. Considering the 0.8 TWh consumption for pumping, the PSPs have a net energy production of about 1.8 TWh per year.

The main reason for the large variation in specific cost is the role of each power plant, as most of these projects are included in larger hydropower schemes where the dams and tunnel systems benefit additional hydropower plants.?

As an example, the water pumped in St?lsdal PSP is to a large extent used for production in other HPPs located downstream in the scheme; thus, the energy production in St?lsdal specifically is very low.

Underground Thermal Energy Storage (UTES)

Norwegian geology favors Borehole Thermal Energy Storage (BTES) applications and at present time the number of BTES installations is about 90. An example of a standard BTES has recently been completed at Falstadsenteret, a 2850 m2 historical museum in Levanger. The heating and cooling system comprises a 130 kW heat pump and thirteen 180 m deep Borehole Heat Exchangers (BHE). The total cost of the GSHP (Ground–Source Heat Pumps) and BTES is 170000 Euro, and the payback time compared to conventional heating and cooling systems is estimated to be 12 years (Midtt?mme et al., 2008).?

There are about ten large Aquifer Thermal Energy Storage (ATES) installations. The largest ATES installation in Norway has a heating and cooling capacity of 7 MW and 6 MW, respectively, and is located at Oslo Gardermoen Airport.?

Norway has a strong focus on Ground-Source Heat Pumps (GSHPs):, a technology that can work in conjunction with UTES for efficient and sustainable heating systems

Ruden Energy provides clean, geothermal heating and cooling, and energy storage. Ruden Energy has created the?High Enthalpy Aquifer Technology?(HEAT) system for underground energy storage. Ruden has developed the Low Enthalpy Aquifer Technology (LEAT) system for heating and cooling large commercial and residential buildings.

Electrochemical Energy Storage (Batteries)

While not as dominant as hydroelectric storage, battery energy storage systems (BESS) are gaining traction in Norway for shorter-term storage and grid services. These systems are particularly useful for frequency regulation, voltage control, and providing backup powerFigure-10: Share of case among new cars sold. EV with fully battery-electric and plug-in hybrids.

Norway has been a pioneer in developing the battery market. Prevalence of electric passenger vehicles in selected countries, including the number of cars sold and as a share of the total passenger car fleet.??

Norway is recognized globally as a leader in the adoption of electric vehicles (EVs), with a significant portion of its vehicle market transitioning to electric.

Norway recently released its Battery Strategy and gathered its current situation and the future projection to show the states’s road map in the industry. The total market for batteries consists of the entire value chain from minerals extracted from mines and quarries, refined raw materials such as nickel, cobalt and manganese, refined precursors, and active cathode materials, anode materials, battery cells, battery packs and recycling.

The Norwegian battery industry consists of experienced actors, including product portfolios for electric vehicles and maritime transport, established producers of materials and energy companies, and various newly established companies, including both some large and many small industrial initiatives. The Norwegian battery industry is in the process of con consolidation through various joint projects, collaboration through trade associations, and emerging cluster collaboration.?

Oslo-based second-life battery storage solutions firm Evyon has raised €8 million (US$8.3 million) in a pre-Series A fundraising round. Corvus Energy is the leading provider of marine energy storage systems, with the most maritime battery systems installed worldwide. Cellon: Designed to redefine the performance of energy storage devices, our innovative material aims to unlock new horizons in their applications. Freyr Battery aims to provide industrial-scale clean battery solutions to reduce global emissions. HexagonPurus manufactures Battery electric vehicles. In 2024, Morrow Batteries will open the first battery cell factory in Arendal, in Southern Norway. Starting in 2028, the company will produce 43 gigawatt hours annually. Eco-Stor is a Grid Energy Storage manufacturer

Latest Advances in Norway’s Battery Industry:?

Norway-based thermal energy storage company Kyoto Group has signed a letter of intent (LOI) to deploy an 88MWh system in Spain in the second half of 2023. Equinor has approved the final investment decision of its first battery energy storage asset in the UK. The Blandford Road battery storage asset in the UK has come into operation. The operational phase marks an important milestone in Equinor’s ambition of delivering flexible power solutions in the country. Norwegian state-owned energy company Equinor will acquire East Point Energy, a US-based developer of grid-scale battery energy storage projects. Norwegian state-backed credit agency Eksfin is providing US$102 million in guarantees for three co-located energy storage projects in South Africa from renewable energy developer Scatec. Kyoto signed its inaugural commercial contract and the first demonstration project for the Heatcube thermal battery solution under a battery leasing (BaaS) arrangement with Aalborg Forsyning in Denmark.?(Norbis Park Heatcube: A long-duration thermal energy storage project in Denmark). Norwegian lithium-ion gigafactory startup FREYR Battery has signed a binding agreement with renewable energy group Statkraft covering 2024-31 for its first two gigafactories.. The two companies have signed a binding Heads of Terms which will be finalized as a long-term physical supply agreement of power for FREYR’s first facilities, in Mo I Rana, Norway. The first vanadium redox flow battery (VRFB) installation in Norway, a 5kW/25kWh system, was unveiled at the beginning of 2023. The new partnership with

There aren't any operational Giga-scale battery factories in Norway as of today. Nevertheless, Norway has been exploring the establishment of large-scale battery factories, often referred to as "giga-scale" factories, to support the growing demand for battery storage solutions, particularly in the context of electric vehicles (EVs) and renewable energy integration

The Norwegian Giga Battery Factories (NorGiBatF) is a competence project headed by the Norwegian University of Science and Technology (NTNU) with scientific partners from IFE, SINTEF, and the Technical University of Braunschweig. The industry partners are FREYR, BEYONDER, NORSIRK, Nordic Mining, and Norsk Hydro.

Elinor Batteries and SINTEF Collaboration: A Memorandum of Understanding (MoU) between Elinor Batteries, a battery producer, and SINTEF, a research organization, aims to establish a giga-scale battery factory in central Norway

Freyr's Giga Arctic project isn't located in Norway but is worth mentioning. Freyr Battery, a Norwegian company, is developing a giga-scale battery factory in Finland.?

In conclusion, Norway recognizes the importance of battery storage as a key enabler of these goals and has implemented various policies, initiatives, and investments to promote the development and deployment of battery storage solutions. They determine 10 actions for sustainable industrialization?

Action 1: Leadership in sustainability along the entire battery value chain

Action 2: Promote Norway as an attractive host country for green investments 48

Action 3: Enter into industrial partnerships with key countries 50

Action 4: Provide capital, loans, and guarantees that mobilize private capital 53

Action 5: Improve access to relevant expertise 56

Action 6: Pave the way for greater access to renewable power 60

Action 7: Contribute to the provision of suitable sites and other central infrastructure 64

Action 8: Ensure predictable, efficient, and coordinated public processes 66

Action 9: Support pilot municipalities during the growth phase 68

Action 10: Become a leader in tomorrow’s battery solutions and leverage the opportunities afforded by digital technologies

Chemical Energy Storage: ?

Chemical energy storage technologies involve converting electrical energy into chemical energy, which can be stored and later converted back into electricity when needed. While Norway is well-known for its hydroelectric power and battery storage solutions, there is growing interest in exploring chemical energy storage options to complement existing storage technologies

Norway is investigating the production of ammonia as an energy carrier and chemical feedstock. They also explore technologies for producing synthetic fuels like synthetic methane, methanol, or Fischer-Tropsch liquids.

Norway introduced biofuel blend-in mandates for road transport in 2009. The blending mandate for biodiesel is 24.5% in 2021 and aims for 40% in 2030. The blending obligation for bioethanol in gasoline has been 4% since 2017.

Norwegian has announced a landmark partnership with Norsk e-Fuel to build the world’s first full-scale e-fuel and SAF plant in Mosj?en, Norway.?

Norway established a blending obligation to aviation fuel suppliers for a 0.5% minimum content of advanced biofuel. The goal is to reach 30% by 2030.?

Egypt and Norway’s Scatec sign agreement for new $450 million green methanol production project (2023) ?

Currently, SAF is more expensive than conventional jet fuel. Continued research and development are crucial to bring down production costs and make SAF a more viable option.

Hydrogen Energy Storage:

Norway is investing in hydrogen production as a means of storing excess renewable energy, particularly from wind and solar power. Electrolysis, using electricity to split water into hydrogen and oxygen, is one method of hydrogen production being explored.

Norway focuses on "green hydrogen" produced using renewable electricity, as a clean and sustainable energy carrier. Green hydrogen can be stored and transported for various applications, including fuel cells for transportation and industrial processes.

Norway has a comprehensive Hydrogen Strategy Road Map. It is a cornerstone of Norway’s broader ambition to transition to a low-carbon economy, leveraging its extensive experience in energy, maritime, and offshore industries.?

Norway's strategy emphasizes the production of green hydrogen using renewable energy sources, primarily hydroelectric power, which is abundant in the country, as well as wind power. The aim is to ensure that hydrogen production contributes to the decarbonization of the energy system without increasing carbon emissions.

Key Players of Hydrogen Energy in Norway:?

HydrogenPro?was?founded?in?2013?with?a?mission?to?design?and?deliver?green?hydrogen?technology?&?systems?in?collaboration?with?global?partners?and?suppliers.?Their?core?product?is high-pressure?alkaline?electrolytes. Hexagon Purus hydrogen storage system is adapted to individual conditions in terms of storage amount, pressure level, space, and positioning inside or outside the vehicle. History is a provider of hydrogen compressors and storage systems based on metal hydride technology Norwegian Hydrogen AS was founded in early 2020 and focuses on developing hydrogen production facilities, distribution networks, and refueling stations. TECO 2030 is building up Europe’s first Giga production facility of hydrogen PEM fuel cell stacks and modules in Narvik, Norway. The production capacity will be built up through 2024 and 2025, targeting an output capacity of up to 200 MW of fuel cells in 2025, increasing to 1.6 GW in 2030.

CAES, Flywheel, Electrical (Super Capacitors) Energy Storage

Norway is also part of European and global research into other storage technologies, such as compressed air energy storage (CAES), flywheel storage, and supercapacitors. These technologies are still mostly in the research or pilot phase but represent potential future additions to Norway's energy storage portfolio.?

Tinfos, a technology company that develops, builds, sells, and operates hydropower plants will speed up a global SuperCapacitor Leader Skeleton’s already ongoing activities in the Norwegian market and adoption of?supercapacitor?and?SuperBattery?energy storage solutions in Norway, addressing the growing demand for grid stability services.

Country’s Perspective on Energy Storage

Norway offers several advantages and can deliver on requirements for highly skilled labor, continuous innovation, and high-yield production. The battery value chain entails an opportunity to connect the Norwegian process industry with the manufacturing industry and to build on our long experience in materials technology, metallurgy, electrochemistry, and high-tech industrial processes.

Conclusion

Norway's energy storage industry landscape is undergoing a remarkable transformation, positioning the country as a frontrunner in sustainable energy storage solutions.?

• Hydropower Supremacy:?Hydropower remains the cornerstone of Norway's energy storage strategy, with extensive reservoirs acting as a massive natural battery.
• Diversification Efforts:?While hydropower reigns supreme, Norway actively explores and invests in other storage technologies like batteries, UTES, and hydrogen to enhance grid stability and integrate more renewables.
• Battery Boom:?Battery storage is gaining significant traction, with the government's Battery Strategy outlining a roadmap for domestic battery production and fostering a robust battery value chain.
• Hydrogen Potential:?Hydrogen, produced using surplus renewable energy, holds promise as a future storage and transportation solution, aligning with Norway's clean energy ambitions.
• UTES Potential:?Geological formations favorable for UTES development offer exciting possibilities for efficient and sustainable heating systems.
• Chemical Storage Exploration:?Investigating chemical storage options like ammonia and synthetic fuels complements existing storage solutions.
• Sustainable Focus:?Norway prioritizes sustainable practices throughout the energy storage value chain, from green hydrogen production to battery recycling.
• Challenges and Opportunities:?While Norway boasts strengths like renewable energy resources and expertise, challenges remain, including attracting talent, securing raw materials, and navigating global competition.

Overall, Norway's commitment to a sustainable future is evident in its multi-pronged approach to energy storage. By leveraging existing hydropower infrastructure, strategically investing in new technologies, and fostering innovation, Norway is poised to play a leading role in shaping the future of clean and reliable energy storage solutions.

REFERENCES:?

Livia Pitorac 1, Kaspar Vereide and Leif L. Technical Review of Existing Norwegian Pumped Storage Plants, Energies, 2020,13, 4918 Available from: https://www.mdpi.com/1996-1073/13/18/4918?

Energy industry in Norway Available from: https://aenert.com/countries/europe/energy-industry-in-norway/#c19070?

FREYR-Investor-Presentation Clean Battery Solutions for a Better Planet?

IEA Norway 2022 Energy Policy Review. Available from: https://www.iea.org/reports/norway-2022?

K. Midtt?mme, A. Hauge, R. S. Grini, NGI. Underground Thermal Energy Storage (UTES) with Heat Pumps in Norway, Norwegian Geotechnical Institute. Available from: https://www.academia.edu/48630207/Underground_Thermal_Energy_Storage_Utes_with_Heat_Pumps_in_Norway?

Norwagean Ministry of Trade and Industry. (2022). Norway’s Battery Strategy.?

Norwegian Ministry of Petroleum and Energy. The Norwegian Government’s Hydrogen Strategy?

DNV?Energy Transition Norway 2023 A national forecast to 2050.?Available from: https://www.dnv.com/energy-transition-outlook/download?