Statkraft continuing with Shetland hydrogen projects but stops new developments

STATKRAFT has announced it will stop developing any further green hydrogen projects – but two already planned for Shetland will continue.

The Norwegian energy giant said it would stop developing new hydrogen projects “across all markets” immediately.

However it said it would continue to develop its portfolio of existing hydrogen projects in the UK, and was seeking investors to take them forward.

Statkraft confirmed to Shetland News that two planned hydrogen projects in the isles will continue to be progressed.

The Norwegian energy giant has recently received government funding for a proposed green energy development at Scatsta, with an as-yet unannounced project in the isles also being brought forward.

The company was given £270,500 by the Scottish Government for plans to build an electrolytic hydrogen to green ammonia production facility at Scatsta.

It said last week that it was finalising a lease agreement for the land adjacent to the former Scatsta Airport with owner Shetland Islands Council.

And a second project, separate to the Scatsta plans, was also one of 27 to move to the next stage of a UK Government funding programme last month.

Statkraft has not confirmed the location of the development, but said it “proposes to convert green hydrogen produced into green ammonia, which can be used as a sustainable fuel for marine shipping and to help decarbonise energy usage and, in doing so, contribute significantly to the UK’s industrial decarbonisation goals”.

Shetland News revealed last year Statkraft was exploring the potential of a site outside of Lerwick for hydrogen production.

Statkraft said this morning (Thursday) it had made the decision to halt development of new green hydrogen projects, though developments in the UK would be “developed further before seeking investors to take them forward”.

The company said the UK projects were at a further stage than those in other countries.

UK managing director Kevin O’Donovan said Statkraft’s existing UK hydrogen projects had seen “significant support from the UK and Scottish governments”.

He said they needed investors to help take the projects forward “into construction and operation”. “We are committed to continuing with the other technologies and services we are well known for, including our leading markets and optimisation activities,” he added.

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