Chemical industry snapshot
Updated with 2025 data
An integrated industry
In 2025 Norway’s chemical, oil refining and pharmaceutical industry had sales of NOK 163 billion (€13,9 billion), of which NOK 144 billion were exports (88%). The sector employed 13,900 full-time equivalents, and generated NOK 41 billion (€3,8 billion) of added value. Official statistics treat chemicals, oil refining and pharma as a single industry.
Powered by natural resources
Traditionally, the Norwegian industrial economy has been centered around natural resources like hydropower, fisheries, the forest, and minerals. Hydro-electric power is the foundation of a thriving process industry of which the chemical industry forms an important part. The ascent of the petroleum sector has clearly benefited chemical companies and strengthened mechanical engineering, maritime suppliers and ship building.
Targeting exports
The chemical industry is highly export-oriented and thus exposed to global competition. Though the industry benefits from access to hydro power and is environmentally friendly, competitiveness is curbed by rising energy costs. The EU is by far industry’s most important export market (see above). Norway is fully integrated in the internal market through the EEA-agreement and adheres to all relevant rules and regulations, including REACH, climate, energy and competition legislation.
Norway and Norwegian chemical industry are firm supporters of free and fair international trade. The unpredictability in trade and tariffs is challenging.
Between river and sea
Chemical plants are chiefly located along the coastline, close to hydroelectric power plants and deep, ice-free harbours. There are local clusters of chemical and other process industries – in industrial parks or in clusters operating across regional borders. International companies have a strong ownership position within the chemical sector and other process industries in Norway.
From basic to biotech
Norwegian chemical production centers around basic inorganics, fertilizers, petrochemicals, polymers, and some specialties and bio-refineries. The pharmaceutical industry is relatively small.
Several Norwegian universities have extensive collaboration with process industry companies. The University of Technology and Science in Mid-Norway has the closest links with the chemical sector.
Biotech start-ups are located around the universities, e.g., in Oslo, Trondheim and Tromsø.
How are we doing?
Strengths
- Unique combination of national energy resources: petroleum, hydropower, and other renewables (wind power and biomass)
- 98% renewable electricity
- An electricity surplus, but war in Ukraine has disrupted European power supply, with high prices in Southern Norway in 2022/24.
- High energy and resource efficiency – expertise in reducing GHG-emissions
- Small environmental footprints
- Well-educated labour force with appropriate industrial skills
- Good cooperation between companies and unions
- Lean organisations
- High level of employment and standards of living
- NGOs and politicians back hydro-powered process industries
- Socially sustainable production with strong focus on health and safety
- Globally integrated and export intensive
Challenges
- Enelrgy prices are high compared to non-European rivals (notably China)
- Expensive feedstock
- Access to competence in the future
- Location on the fringe of Europe further from markets
Our contribution to a competitive Europe
In addition to Norway’s deep cooperation with the EU through the EEA Agreement and other sectoral agreements, the relationship has been reinforced in recent years through a number of strategic partnerships concluded with the EU and EU Member States. So far these include the EU-Norway Green Alliance (2023) followed by a partnership on raw materials and batteries in 2024, an energy and industrial partnership with Germany (2023), a green industry partnership with France (2024), and, most recently, a strategic industrial partnership with Italy (2026). Further partnerships with EU Member States are planned in coming months and years. A key premise in all of these is that Norway is an integral part of the European economy through its full participation in the internal market and play an important role in critical European value chains.
A climate change advantage
The chemical industry and the energy intensive industries in Norway are at the forefront of GHG abatement, having reduced its emissions by 45% since 1990. A tri-partite collaboration between industry, unions and the authorities has further strengthened this ambition and measures will be brought forward in the years to come. A climate partnership for the energy intensive industries is up and running, contributing to national goals.
The government’s climate ambitions are aligned with EU. Participating in the EU ETS, the EU carbon price constitutes the main climate-related instrument for chemical companies. Norwegian process industries receive free allowances and carbon cost compensation. These instruments are key to guard against carbon leakage. For industry outside of ETS, there is a CO2 tax, aiming for a level playing field.
Funding for pioneering technologies
Enova, an enterprise managed by the Norwegian State, supports pilot and demonstration installations and deployment of new climate technology including CCS. Environmental technology development and deployment are also supported, along with SME projects and energy efficiency projects. Norwegian enterprises also have access to Horizon Europe and the ETS Innovation Fund.
Supporting knowledge and innovation
Norway has a broad range of national programmes supporting R&D in both private and public sector. From an industry perspective, the long-term R&D priorities are ocean, space, energy, climate, sustainability, emerging technologies – including advanced production and materials – and infrastructures. Industrial companies and academia co-operate in R&D initiatives through national research centres, such as the SFI and the FME programmes, a new national scheeme named Green Platform and smaller R&D projects such as the industrial innovation projects (IPN).
Generation capacity/Power exchange
The energy crisis and expected price uncertainties within the European and Nordic markets are challenging. Industrial production in Norway, will continue to be close to 100% based on renewable energy for the foreseeable future, being in line with the Green Deal industrial objectives.
