Norwegian industry warns of costly challenges from upcoming fossil fuel ban

Norway’s decision to prohibit the use of oil and gas for industrial heat from 2030 has sparked alarm among manufacturers. Gudbrandsdalen Uldvarefabrikk, a family-owned wool producer in Lillehammer, recently installed water-to-water heat pumps to cut gas use but still relies on propane for certain processes, and its CEO says earlier knowledge of the ban would have altered their investment choices. Vartdal Plastindustri, which supplies insulation and crates to the fish industry, is evaluating heat exchangers and wood-chip heating, estimating investments of tens of millions of kroner per site, with total costs potentially reaching half a billion kroner across all locations.

Both firms cite a lack of comparable requirements in neighboring countries and limited electricity grid capacity as major hurdles. The climate and environment minister emphasizes that the ban has been signaled for years, that alternatives exist, and that companies can apply for Enova support or exemptions where necessary. Industry association heads warn that without predictable rules, some companies may face reduced competitiveness or consider relocation.