Norway – unique location for

battery development and production

Norway is a unique location with all required components in place for establishing your competitive

business within the battery production value chain from materials, cell production, and module

assembly to recycling:

✓ Materials and logistics – Large share of materials available either in Norway or Nordics: Lithium

(Norway, Finland), graphite, minerals for titan oxides. Available industry sites with deep-water

facilities and logistics for other import and export.

✓ Leading industry partners – Globally leading metallurgic industry for value chain cooperation:

Aluminium (Hydro, Alcoa), Silicon (Elkem, Dynatec), Nickel, Cobalt and Copper (Glencore),

Graphite (Skaland, Elkem Carbon, Saint-Gobain), Separator and electrolyte (Borregaard). Global

players in module assembly for marine battery applications: Siemens, Corvus Energy and PBES.

✓ High R&D competence – Excellent competence centers in metallurgy, automation, industry

processes, assembly and more: Sintef, NTNU, Sintef Raufoss, IFE, Kongsberg Maritime and

Elkem.

✓ Productive and innovative – High productivity across all industry steps, from material usage,

processes and labour – ranked 3rd highest in OECD. Efficient & innovative due to high-skilled

labour and work culture. Several examples of reshoring in process and machinery industry.

✓ 100% clean, reliable energy – Abundance of 100% clean, reliable renewable hydropower energy

at low prices across the country. Historically 25% lower than European average, with economic

incentives for material- and energy-intensive industry.

✓ Customer proximity – Close to European demand with Norway fully integrated in the EU single

market through the European Economic Area, while not a member of EU. Long tradition for

supplying European and Global automotive industry.

✓ Support ready – Governmental support schemes competitive with other countries.

✓ Stable and easy – Politically stable and world leading ranking on transparency (3rd), ease of

doing business (9th), productivity (3rd) and competitiveness (11th). 6000 foreign-owned

companies provide ~25% of industry value-creation and ~20% of employment.

✓ Forefront globally - Norway is at the forefront of electrification of transport.

Invest in Norway- the governmental investment promotion agency of Norway- invites players across

the value chain to locate in Norway and will do its outmost to facilitate such industry establishment.

We have close cooperation with vital parts of the Norwegian industry and would know relevant

partners for your company to cooperate with.

Yours sincerely

Finn Aamodt Per Stensland

Director, Invest in Norway Special advisor, Invest in Norway

1. Contents

2. ABOUT NORWAY ............................................................................................................................. 4

3. ADVANCED GREEN INDUSTRY-, RAW AND PROCESSED MATERIALS .............................................. 5

4. THE NORWEGIAN MANUFACTURING INDUSTRY ............................................................................ 7

5. BATTERY DEVELOPMENT IN THE NORWEGIAN MARITIME MARKET ............................................. 8

6. LOCATIONS AND LOGISTICS IN NORWAY ...................................................................................... 10

7. GOVERNMENTAL SUPPORT AND INCENTIVES .............................................................................. 12

8. NORWAY IS 100% POWERED BY CHEAP, RENEWABLE ENERGY ................................................... 15

9. NORWAY IN THE FOREFRONT OF ZERO-EMISSION TRANSPORT .................................................. 17

10. COMPETENCE AND R&D ............................................................................................................ 18

11. LABOUR AND PRODUCTIVITY .................................................................................................... 20

12. DOING BUSINESS IN NORWAY .................................................................................................. 20

13. PARTNERS .................................................................................................................................. 22

14. HOW TO PROCEED .................................................................................................................... 22

15. APPENDIX .................................................................................................................................. 23

2. ABOUT NORWAY

Norway is a politically stable, modern and highly

developed country with a very strong economy. Norway

is in international ranking seen as the most stable

democracy in the world (Democracy index 2017) and

small political differences make the business framework

predictable. Norway tops most rankings for business

parameters.

Norway is a safe and easy country for business. Norway

ranks as no 9 of 190 countries on the Ease of doing

business from the World Bank. According to this survey, Norway scores as the 4th best country on

Starting a business.

The population of 5.3 million is modest in size, yet its purchasing power is comparable to larger

economies due to high standard of living and evenly distributed wealth. Most Norwegians are fluent

English speakers with French and German frequently spoken as well.

Norway has always been open to foreign investments. There are about 6000 foreign-owned limited

companies in Norway with many additional branch offices. Foreign companies represent about 25%

of all value-creation in Norwegian industry and about 20% of the employment. Many large multi-

national companies are present in Norway, within the metals, process, oil and gas industry, maritime-

/shipping industries, and the technology development.

Norway is now looking for new industrial development. We are particularly looking at new industry

development based on abundance of cheap, renewable energy.

The Nordics

Norway is part of Scandinavia and the Nordic region with a total of about 27 mill People. This region

in the north-western part of Europe share common values and partly a common language

(Scandinavian). The Nordic countries are generally top-performing on most rankings with relevance

for business.

3. ADVANCED GREEN INDUSTRY-, RAW AND PROCESSED MATERIALS

The Norwegian process-industry produces energy-intensive materials and products based on 100 %

green, renewable energy, making these uniquely positioned from a sustainability point of view. New

entrants in the battery value chain can fully utilize the advantage of hydroelectric power, and the

usage of raw materials from Norwegian suppliers in the battery value chain will have a significant

positive effect on carbon footprint and improved Life Cycle Cost.

It is a vital goal for the process-industry to be at the sustainability forefront, producing more energy-

and resource-efficient, and with lower carbon footprint than competitors. This industry sector has

recently developed a roadmap to be carbon neutral by 2045, as a response to the Paris Agreement.

Companies and operating environment

Norwegian process industry is a global hub for producing specialized materials for challenging

technological applications within automotive, aviation, maritime and energy. Consequently, this

industry is R&D/Innovation intensive and is characterized by international ownership and exports,

B2B relationships and co-development with customers.

• Nickel, cobalt, copper, and aluminium are important refined materials in production of battery

cells and cathodes. The large, international companies Glencore Nikkelverk, Hydro and Alcoa,

produce and supply these materials in Norway and may support the battery value chain with

materials and know-how.

• Silicon and silicon alloys are locally produced by Elkem, a global leading supplier. The company is

also utilizing its vast experience in carbon and silicon to develop both synthetic graphite and

silicon anode materials for rechargeable lithium-ion batteries. Moreover, Dynatec Engineering

offers new, disruptive technology for special qualities of silicon. And Saint Gobain is world

leading producer of Silicon Carbide and potential supplier of synthetic graphite.

• Borregaard LignoTech is a leading manufacturer of organic additives for lead acid batteries and

other battery applications. Ineos produces polyethylene.

Our country has extensive mining operations. Europe’s largest crystalline flake graphite production is

located in Northern Norway. Minerals for titan oxides are extracted at Titania and under planning at

Engeboe by Nordic Mining, and there is a Nordic source of lithium under development to produce

lithium carbonate.

Map of the Norwegian process industry (source: Federation of Norwegian Industries)

There is a high degree of cooperation between companies in the Norwegian Process Industry. The

Eyde Cluster organizes cooperation between companies in Southern Norway, while Artic Cluster

Team offers similar cooperation framework in Northern Norway. Recently two national “catapult

centers” were launched. These two are focusing on materials and automated production hence

names are Future Materials Norwegian Catapult and Manufacturing Production Norwegian Catapult.

The Nordic work model is unique to mobilize employees in continuous improvement work, utilizing

their competence on all levels in the organization to implement successful and innovative solutions.

Recycling of Li-ion batteries

Norway is in the global forefront with incentive programs to promote the growth in use of electric

vehicles and electrified ferries. In 2017, 40% of all personnel cars sold were electric or rechargeable

hybrid cars. This share is expected to reach near 100% in 2025.

There are full scale solutions for recycling of Li-ion batteries available, but these are insufficient to

regain vital and valuable components of the battery. The company Hydro is in lead on a development

program aiming at achieving much higher material recovery rate than currently available processes,

including recovery of lithium, and in an environmental friendly process with low energy

consumption.

The broad cooperation of the Norwegian process industry facilitates the possibility of bringing

process and materials technology core competence into the battery recycling business. In 2030,

more than 200 000 tons of lithium-ion batteries in the EU must be recycled and five years later, in

2035, the expected volume is at least twice as large. Bloomberg New Energy Finance has assumed a

value of 1 700 USD/Tons of recycled Li-ion batteries. Such recycling solutions will also be supportive

to existing local materials producers that will be able to further increase the portion of raw materials

to their processes coming from “urban mining”.

4. THE NORWEGIAN MANUFACTURING INDUSTRY

Norwegian industry is at the forefront on automation and efficiency. It has been forced to develop

these capabilities due to competition from international players with lower labour costs. This applies

to all industry sectors.

In particular, the supply sector supplying automotive industry has managed to develop world-leading

competence and sustain a strong value chain despite the competition. The industry is centred around

Raufoss as the national competence center for light-weight materials and automated production in

Norway. The cluster has 17 company partners, some 5000 employees and export ratio of more than

80 %. The main markets for the cluster companies are the global automotive industry, the defence

markets and B-B electronics, and strong niches within areas like gas tanks, aluminium profiles,

mobility aids etc.

5. BATTERY DEVELOPMENT IN THE NORWEGIAN MARITIME MARKET

The maritime industry in Norway has a globally strong position in markets around the world, and are

taking the global lead in electrification of maritime vessels. All the players in the maritime value chain

are represented in Norway; ship owners (offshore, deep sea, short sea and drilling and production),

equipment manufacturers, service providers (financial, legal, port, logistics, technological and

trading) and ship yards.

Norwegian-controlled shipping companies control the world's 6th most valuable ship fleet, and

Norwegian maritime companies are world leaders in a wide range of areas. Norway has one of the

world's most comprehensive environments for maritime services. For example, Det Norske Veritas

GL (DNV GL) has classified more than 20 percent of the world's sailing fleet. DNB and Nordea are the

world's two largest ship financing providers.

In addition, Norwegian companies are behind a continuous stream of innovations within ship design,

propulsion systems, equipment and services. Many of the innovations have and will contribute to

environmental and climate improvements.

The Norwegian supplier industry and ship owners are at the global forefront of environment friendly

technologies at sea. Since 2010 there has been a significant increase of batteries on-board vessels,

both full electric and battery hybrid solutions. Currently there are more than 60 full electric or

battery hybrid vessels globally, and 40% of these are Norwegian vessels. This trend is expected to

grow in the years to come, and that batteries will be applied in more and more of the vessels

segments.

Ampere, the world’s first electric ferry. Photo: Norled

The ferry sector together with offshore has been the two sectors that have contributed the most to

the fact that there is a good market for battery development and deliveries in Norway. Several

maritime battery companies have in recent years established themselves with production in Norway:

Plan B Energy Storage (PBES), Siemens, Grenland Energy, ZEM, and Corvus (operating, but not yet

producing in Norway).

From 2016 to 2017 PBES increased their work force from 2 employees to over 40 employees, and

went from trial production to an expected turnover of 21 mill EUR. The establishment of battery

factories in Norway gives a ripple effect and there are an increasing number of Norwegian sub

suppliers to battery production.

Siemens expects a doubling of the marine battery market by 2024, and that nearly 80 percent of all

new small and medium-sized vessels up to 150 meters, will be equipped with hybrid solutions that

include battery operation. More information can be found at Norwegian maritime Battery Forum.

Requirements from operators in combination with economic incentives will lead to more action. The

new contracts that the largest petroleum company, Statoil, has entered into are a good example of a

driver: batteries installed are a requirement for long-term contracts (3-5 years) with the ship owners.

This has prompted many shipping companies to offer the solution, and such contributed significantly

to market change in the segment.

6. LOCATIONS AND LOGISTICS IN NORWAY

Norway´s coastal regions have abundant hydropower and deep-sea ports that provide excellent

energy and logistics conditions. As a result, the main volume of Norwegian process industry is located

along the coast. Several of these locations provide free space and readily available power

infrastructure for battery production.

Due to the distribution of ports along the entire coast, transport to and from countries abroad is

efficient all over Norway. This link gives an overview of all ports. Zoning of new industrial land is

overseen by the municipalities. Zoning processes are transparent and predictable. Building permits

are issued on the base of approved plans with building permit processing time down to 5 days.

Invest in Norway maintains an overview of available greenfield and brownfield sites for new industry

and offers complimentary assistance to identify sites compliant with the investor´s needs. Some

examples follow.

Example of greenfield site: Haugaland Industrial Park. 500 Hectares zoned for industry. ISPS port 110 m quay / 16.5 m draft.

Adjacent regional power grid

Mo Industrial Park, example of large brownfield opportunity, totally 260 hectares with large quantities of renewable power

available

Example of greenfield opportunity in Southern Norway, Gullknapp. 125 acres that can be expanded, with neighbouring

private airport. Close to process industry like Glencore Nikkelverk, Alcoa and Elkem. Adjacent regional power grid.

Example of greenfield opportunity in Vestfold county, Southern Norway. Source: Statkraft

7. GOVERNMENTAL SUPPORT AND INCENTIVES

Norway has a broad range of funding agencies and instruments custom made for projects in various

stages of matureness from basic research, industrial and experimental research to demonstration and

market introduction.

At the early stages of research, there are tax instruments (called Skattefunn) and R&D support

(Norwegian Research Council) whilst ENOVA is the funding instrument for demonstration, market

introduction and market change. Innovation Norway operates in several of the stages in between.

The Norwegian support system for power-intensive industries moreover entails tax-reduction and

support mechanisms for research and development within energy efficient solutions. Electricity

prices in Norway are among the lowest in Europe due to the low-cost hydro power resources,

furthermore power intensive industry is largely exempted from electricity tax and costs of electricity

certificates, and Norway has a scheme to compensate energy-intensive industry for the indirect CO2

costs linked to the EU ETS.

Enova

Enova is at state-owned funding agency in Norway. Enova’s main purposes is to is to create

permanent changes in supply and demand for efficient and renewable energy and climate solutions,

strengthen security of supply and reduce greenhouse gas emissions. Enova therefore invest heavily in

future-oriented energy and climate measures, and thus represent a unique potential when it comes

to development and implementation of battery technology in transport and industry.

Enova’s foremost instrument is investment support for projects. By covering some of the extra costs

(up to 40% as general guide line) that the market takes on by selecting more energy and climate-

friendly solutions, Enova can promote energy and climate projects that would otherwise not have

been realized. The support boosts profitability in the projects and reduces the risk for the project

owner, and strengthens the position of the energy and climate projects when investment decisions

are made.

Enova has several financial support programs and an impressive portfolio of investment projects.

Some examples that’s demonstrate how Enova can supports different players in a value chain:

• 14 mill EUR to Yara for the construction of the first autonomous and fully-electrical zero-emission

container ship in the world

• 164 mill EUR to Hydro for the industrial pilot at Karmøy for HAL4e, for the design of a new

technological platform for aluminium production with low energy consumption, high production

efficiency and low environmental impacts

Norsk Hydro technology pilot, supported by Enova. Credit: Norsk Hydro.

• 5 mill EUR to the Norwegian coastal express for the construction of two hybrid and energy

efficient artic expedition vessels.

• 37 mill EUR to 60 projects establishing land power infrastructure for vessels in Norwegian ports.

Use of land power contributes to increased energy efficiency and reduced greenhouse gas

emissions when ships are at the dock.

Innovation Norway

Innovation Norway is the Norwegian Government's most important instrument for innovation and

development of Norwegian enterprises and industry. Innovation Norway supports companies in

developing their competitive advantage and to enhance innovation. Innovation Norway has offices in

all Norwegian counties and in more than 30 countries abroad.

Innovation Norway provides grants, loans and sector-specific schemes. The Environment Technology

Scheme (ETS) is a nation-wide program well-suited pilot and demonstration facilities in development

of new environmental technology. The ETS scheme would be well suited in a situation where a

battery technology provider seeks risk reduction for developing the technology or process in a more

environmental-friendly way.

The Research Council of Norway

The Research Council of Norway serves as the chief advisory body for the government authorities on

research policy issues, and distributes roughly EUR one billion to research and innovation activities

each year. The Research Council works to promote international cooperation and increase

participation in the EU framework program on research and innovation. The Research Council creates

meeting places and provides a platform for dialogue between researchers, users of research and

research funders.

One of the Council’s programs is covering battery development; the Energix program, which has

awarded up to 53. mill. EUR until 2017.

Pilot E

Pilot-E is a joint initiative from Enova, Innovation Norway and the Norwegian Research Council which

offer financial support to Norwegian industry. The purpose of the scheme is to ensure that products

and services within environmentally friendly energy technology will be developed and implemented

faster in order to contribute to emission cuts in Norway and internationally. Pilot E contributes to a

fast track process from idea to market. To qualify for support from PILOT-E a project must include the

entire course from research to full-scale demonstration of new concepts or innovative solutions

under real operational conditions.

Tax incentive

Norwegian tax rules offer an R&D incentive scheme called “SkatteFUNN” which give tax credit for

R&D costs up to certain thresholds. The scheme is funded and administered by the Research council

of Norway. The amount of the tax credits is either 18% or 20% of the costs incurred, depending on

the size of the business. The SkatteFUNN R&D cost ceiling for R&D projects using in-house R&D

resources is EUR 2 million per year. The SkatteFUNN R&D cost ceiling for R&D projects also using

external pre-approved R&D resources is EUR 4 million per year. Total costs for in-house and external

resources must not exceed EUR 4 million.

8. NORWAY IS 100% POWERED BY CHEAP, RENEWABLE ENERGY

Norway has cheap, abundant power supply, 100% renewable and reliable – the country is thus home

to advanced energy-intensive industries and is leading the energy transition across sectors

Norway’s power mix is already fully renewable.

There are large hydro reservoirs high up in the mountains that is ready to produce when it is

demanded by industry and consumers. When demand is low, the water is kept in the reservoir. This

enables the national power system to be free of fossil power generation, and moreover this hydro-

based power system allows the highest security of supply. This could enable battery production with

the lowest carbon footprint in the world.

The power supply is moreover 100% reliable. The national transmission grid is among the strongest

in the world, built to support large-scale electrification of industry and household heating. This

means there will be clean power also when there is no wind, no sun, and very few, if any,

disturbances in the power supply to industry. The power system is well connected to surrounding

countries, which further stabilized supply.

Lowest industry power tariffs in Europe

Norway has, depending on the year, the lowest or among the lowest power tariffs in Europe,

including power component, grid access component and taxes.

0%20%40%60%80%

100%

Share of renewables, Norway & relevant EU countries

0

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60

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2007 2008 2009 2010 2011 2012 2013 2014 2015

EU27 & Norway industry tariffs, incl. taxes (Euro/MWh)

The low prices are due to the existing low-cost hydropower plants, but they will with certainty

remain low due to the abundance of cheap wind power, at cost levels that are 10-25% lower than

elsewhere in Europe.

Efficient power market and purchasing options

The Nordic power market is role model for liberalization of power markets globally. The market is

very liquid and one may secure power supply physically or financially for long time-horizons.

Corporate PPAs tied to specific new renewables projects are also plentiful and increasing. There are

several large power suppliers and traders which your company can engage with.

Home of energy-intensive industry

Since the early industrialization in early 1900, the abundance of cheap power has attracted power-

intensive industries to Norway, and helped create a cluster of metallurgic, mining and processing

industry in the country. These are strong potential partners to battery value chain players, and the

industry from strong industry associations for advocating, collaboration and R&D.

Leading the energy transition

As Norway already has a fully renewable power mix, the country has focused on decarbonisation

other sectors like transport and industry. Norway is world-leading in electric vehicles uptake, and in

electrification of heating and industry processes. There are initiatives to utilize the country’s forest

resources towards bio-chemicals and bio-fuel, and initiatives to provide clean hydrogen from

electrolysis to industry processes.

Together these trends and initiatives create a fertile ground for establishing the most sustainable and

most competitive battery production world-wide.

9. NORWAY IN THE FOREFRONT OF ZERO-EMISSION TRANSPORT

Norway is leading the energy transition and electrification of transport, due to early and fertile

policies enacted and sustained by Norwegian governments last 15 years.

Norway’s ambition is to reduce greenhouse gas emissions with 40% within 2030 (compared to 1990

levels) and to be carbon neutral in 2050. This is adopted by Norwegian law in the Climate policy. The

policy sets goals for national emission reductions and for restructuring Norway to a low-emission

society. The agreement is a result of the broad political consensus that Norway shall take a

responsibility for a reduction in greenhouse gas emissions through an active national policy.

Transport, including maritime transport, accounts for a large part of Norway's greenhouse gas

emissions and thus plays an important role in reaching Norway’s climate goals.

The government's overall goal for national transport is “a transport system that is safe, promotes

value creation and contributes to conversion to the low-emission society.” The national transport

plan (NTP) outlines how the Government intends to priorities resources within the transport sector.

It is a twelve-year-plan that is revised every fourth year. NTP is followed by a white paper that forms

the basis for the annual state budget for the Norwegian transport sector, allocating resources to the

four national transport agencies (rail, road, air and sea).

The Climate strategy for transport in NTP aims for a 50 % reduction of emissions from transport by

2030. To reach this ambitious goal, improvements in several areas must be done: introduction of

low- and zero-emission technology, sustainable biofuels, zero growth of cars in the cities, transfer of

goods from road to sea and railways and reduced emissions from construction, operation and

maintenance.

Goals related to introduction of low- and zero-emissions technology entails:

• After 2025, new private cars, city buses and light vans are to be zero-emission vehicles

• By 2030, new heavy vans, 75 % of new long-distance buses, and 50 % of new lorries are to be

zero-emission vehicles

• By 2030, goods distribution in major urban centers are to be almost emission free

• New ferries and speed boats are to run on biofuels, low or zero-emission technology

• By 2025, shore side electrical power and charging power are to be available for ships in major

ports

• By 2030, 40% of all ships in local shipping are to run on biofuels or be low-/zero emission vessels

To reach these goals, the government uses at set of incentives: taxes and regulations, funding of

R&D, demonstration etc. As an example, zero-emission cars have several benefits in Norway to

promote a green shift: tax exemptions, facilitation (parking etc.), access to public transport lanes and

low rates at toll rings.

In 2017 more than 20 per cent of all new passenger cars sold in Norway are zero-emission electric

cars (and almost 40 per cent if chargeable hybrids are included). Electric and hybrid cars have in the

space of just a few years become real alternatives in the passenger car market. By financial support

to the development of a nationwide battery charging infrastructure Enova has accelerated the

market up take of electric cars. Enova also has a program for financial support to the development of

hydrogen filling infrastructure in the largest cities in Norway.

10. COMPETENCE AND R&D

Norwegian battery competence is to be found both in the industry and amongst universities and R&D-

institutions. There are several research institutions active in the field.

MoZEES is a Norwegian Research Center on Zero Emission Energy Systems with focus on battery- and

hydrogen technology for transport applications. MoZEES has a total of 40 partners including 7

research institutions, 7 public bodies and 26 industrial partners. The center in addition collaborates

with 6 international research institutions. Battery research areas within the Mozees initiative are:

• Materials and components for battery; anodes, cathodes, electrolytes, increased performance,

capacity and rate capability

• New fabrication methods

• Lower cost of production

• Battery modelling, life-time and safety

• Battery systems, optimization and hybridization

21%

3%2% 1% 1% 1% 1% 1%

0%

5%

10%

15%

20%

25%

Norway Netherlands Austria France Switzerland Sweden Germany UK

EV share in new car sales

The Norwegian University of Science and Technology is the largest university in Norway today, with a

history dating back to 1910, and a tradition going back to 1767 and the Royal Norwegian Society of

Sciences and Letters (DKNVS). Two of their researchers received the Nobel Prize in medicine 2014.

The University in Oslo moreover has strong competence areas in chemistry, physics and research into

battery technologies.

Institute for Energy Technology (IFE) is the host and leader of Mozees and also leads the work on

battery systems within Mozees. IFE is an independent research foundation located in Norway at

Kjeller and in Halden. IFE is in the forefront of several fields within international energy research,

safety, environmental-, petroleum- and nuclear technology. IFE develops new technological solutions

for the industry and public sector in more than 30 countries. IFE has a strong battery technology

group working within new materials for Li-ion batteries and battery life-time and ageing, diagnostics

and safety.

SINTEF is one of Europe’s largest independent research organisations. SINTEF is a broad,

multidisciplinary research organisation with international top-level expertise in the fields of

technology, the natural sciences, medicine and the social sciences. SINTEF conducts contract R&D as

a partner for the private and public sectors, and is one of the largest contract research institutions in

Europe. SINTEF is performing research on the whole battery value chain, from development of new

materials for existing batteries and new battery systems to evaluation of performance and lifetime of

commercial batteries for various applications. Other electrochemical energy storage systems such as

supercapacitors and redox flow batteries are also areas of research.

In addition to the research competence, two industrial battery projects were vital for building battery

competence in Norway; Norway’s production of the electric car Think and the cooperation between

Miljøbil Grenland and Tata Motors. As for Think, this battery competence has been brought into

ZEM; and in the Grenland area, Grenland Energy is utilizing the competence into maritime batteries.

11. LABOUR AND PRODUCTIVITY

Norway has a very skilled, competent and productive labour force and work culture. The labour

market is efficient, integrated with EU, and availability good. The salaries are quite equal across

sectors and roles compared to other countries, meaning high skilled labour is relatively cheap.

The unemployment rate of 4Q of 2017 was 4,1% (Statistics Norway). There are however regional

differences. Due to the cooling in the oil and gas sector, there is more available skilled labour in

Norway than for a decade.

Average annual salary in 2017 was about 54 ‘EUR. For plant and machine operators and assemblers,

the annual salary was in 2017 47’ EUR. Salaries in Norway are above European average; however,

Norway has increased its competitiveness since 2013 due to the depreciation of the Norwegian

currency.

A notable effect of Norway´s high wage equality is, however, the modest salary culture among highly

educated personnel. The average annual income for a Norwegian engineer with Master´s degree and

10-19 years of experience in private business is about 90´ EUR. (The Norwegian Society of Graduate

Technical and Scientific Professionals).

Salary levels and productivity levels are interconnected. Several international rankings show Norway

as the second most productive country (GDP per cap/hours worked). According to the IMD

Competitiveness survey, Norway scores as the 2nd most productive and efficient country in their

ranking.

12. DOING BUSINESS IN NORWAY

Foreign capital has been decisive in developing new industries in Norway. Two of our most important

industries, oil and gas and the process industry were both built with foreign capital and expertise.

Foreign investments to Norway are thus widely encouraged by both local and central government.

The Norwegian Government has established several agencies to support and stimulate innovation,

growth and internationalization in Norwegian business. In addition, there are several regional

development and business agencies.

Tax

The tax system is neutral towards foreign and local investors and there are few investment

restrictions. Also, Norwegian company legislation contains very few restrictions and disadvantages

towards foreign investors.

Companies tax resident in Norway are subject to a corporate income tax of 23% on their net tax

income. Special tax regimes apply to income from the exploration of petroleum resources, shipping

income and income from the production of hydropower.

All kinds of income, interest, dividends, capital gains on the disposal of assets or ownership interests

and foreign-sourced income taxable in Norway are included in the ordinary taxable corporate

income. However, for resident limited liability companies or entities, the participation exemption

method is applicable for dividends and gains on shares and partnership interests. There is no

separate tax on capital gains, and hence capital gains are taxed as ordinary income at the general

corporate income tax rate of 23%.

Competitive, productive and digital

Norway ranks as no 9 of 190 countries on the Ease of doing business from the World Bank. According

to this survey, Norway scores as the 4th best country on Starting a business. As for competitiveness,

Norway ranks as the 9th most competitive country, according to IMD world Competitiveness report.

In this survey, Norway ranks as the third most productive and efficient country.

According to the IMD Digital Competitiveness ranking of 2017, Norway scores between the top 3

countries on criteria like band-with speed, number of internet users and use of communication

technology. Generally, Norwegians are typically early adopters and thus an excellent test market.

The Norwegian business culture is based on Norwegian (Scandinavian) work values, focusing on

equality, autonomy and empowerment. As a result, you will see little hierarchy, flat structures and

an informal communication. The level of trust is high in the society, meaning that business can be

efficient without building too much management structures. Working in Norway means that you

must take responsibility and initiative.

13. PARTNERS

This document has been developed by the following partners:

• Invest in Norway, the governmental Investment Promotion Agency of Norway

• Enova, governmental agency for development of energy and climate technology

• Statkraft, a leading company in hydropower internationally and Europe’s largest generator of

renewable energy

• The Eyde Cluster, Norwegian Centers of Expertise for the process industry

• Sintef Raufoss Manufacturing, Norway's leading centre of expertise in manufacturing

• IFE, Institute for Energy Technology

14. HOW TO PROCEED

Invest in Norway invites players across the value chain to locate in Norway and will do its outmost to

facilitate such industry establishment. Invest in Norway can provide information, help with site

selection and find relevant partners. Contact persons can be found on our website:

http://www.innovasjonnorge.no/en/start-page/invest-in-norway/contact-us/

Investors and companies from the US, Japan, China and Germany, please feel free to take direct

contact with our local staff mentioned on link above.

15. APPENDIX

Doing business in Norway

• https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?year_high_desc=true

• http://www.doingbusiness.org/rankings

• https://www.imd.org/wcc/world-competitiveness-center-rankings/world-digital-

competitiveness-rankings-2017/

• https://worldcompetitiveness.imd.org/countryprofile/NO/wcy)

• https://www.tekna.no/en/

Advanced green industry- raw and processed materials

• http://www.nikkelverk.no/en

• https://www.hydro.com/

• http://www.alcoa.com

• https://www.elkem.com

• https://www.dynatecengineering.no

• https://www.lignotech.com

• https://www.ineos.com

• https://graphite.no/#!/about.

• http://www.nordicmining.com/engebo-project/category317.html

• https://www.keliber.fi/en .

• https://www.eydecluster.com/en

Governmental support and incentives

• https://www.energinorge.no/contentassets/525e77b1feff4203a94ef6d1f94cfd03/electricity-

costs-of-energy-intensive-industries-in-norway.pdf

• https://www.enova.no/about-enova/.)

• https://www.skattefunn.no/prognett-skattefunn/Home_page/1222340152176

• http://www.innovasjonnorge.no/en/start-page/our-services/financial-services/

Battery development in the Norwegian maritime market

• http://maritimebatteryforum.com/news/maritime-battery-production-in-norway

• http://www.pbes.com/

• https://www.siemens.com/no/no/home.html

• http://grenlandenergy.com/

• https://www.zemenergy.com/ .

• http://corvusenergy.com/

R&D

• http://mozees.no/

• https://www.sintef.no/en/batteries-and-energy-storage/