Tom Barlow-BrownNorwegian hydrogen fuel cell company TECO 2030 has announced a shift in its strategic focus from manufacturing hydrogen fuel cells domestically, to pursuing international growth through licensing agreements.
The company claims the pivot will allow the company to explore opportunities in global markets, such as the U.S., India, and Southeast Asia, where robust public investments and government-backed initiatives are driving the demand for clean energy technology. The decision underscores a stark contrast to the pessimistic tone expressed in its recent communication to the Norwegian government regarding delayed emission reduction policies.
In an open letter to the Ministry of Trade and Industry, TECO 2030’s CEO Tore Enger voiced frustration over the uncertainty of Norway’s environmental regulations, particularly the postponed zero-emission requirements for fjord tourism from 2026 to 2032. Enger highlighted how such regulatory delays have de-incentivised green investments and hindered the development of hydrogen and other zero-emission technologies in Norway.
The company had committed to local production of hydrogen fuel cells at at a mass-production facility in Narvik. However, the letter states that without clear government backing and requisite capital, TECO 2030 is now looking abroad for more favourable conditions.
‘Unfortunately, the government loses all trust when it promises things that are not carried out,’ Enger remarked in the letter, pointing to missed opportunities for zero-emission speedboats and hydrogen projects. ‘When the commitment to zero emissions loses credibility, it also becomes impossible to raise private capital.’
Despite setbacks domestically the company is collaborating with AVL List GmbH to develop a compact fuel cell system, the FCM400. TECO 2030 also plans to take advantage of public funding through initiatives like the U.S. Inflation Reduction Act (IRA), which allocates $8 billion to hydrogen hubs and $369 billion to broader climate and energy efforts.
The company’s decision to pivot its business model comes after Ship Energy previously reported on how the Norwegian government’s hesitation to implement strict emissions regulations has led to a lack of confidence in the market, discouraging private and public investment in new clean energy technologies.
Though the shift may seem at odds with Norway’s long-touted hydrogen ambitions, Enger left a door open for potential domestic growth, contingent on financing solutions. ‘It is still possible to resume the investment in Narvik if we find a quick financing solution,’ he said, underscoring the company’s desire to contribute to Norway’s green transition despite the current hurdles.green investment.
Image: TECO 2030
