Energy / More details emerge of ammonia plant near Dales Voe amid ‘industrialisation’ warning
THE “INDUSTRIALISATION of Shetland continues”, it has been claimed, after more details emerged for a proposed green ammonia plant on the outskirts of Lerwick.
Sustainable Shetland chairman Frank Hay also claimed that Statkraft’s proposed plant would be “bad news for neighbouring residents and anyone who cares about the environment we have to live in”.
Shetland News first revealed back in 2024 that Statkraft – which has a number of other local projects in the pipeline – was looking into a hydrogen-related facility in the radius of Lerwick.
With public consultation events now planned for next month, some more proposals of the scheme – called Shetland Hydrogen Project 1 for now – have been firmed up.
The capacity of the hydrogen-to-ammonia plant would be from 60MW up to 80MW – much smaller than Statkraft’s similar facility planned for land near the former Scatsta Airport, which would be up to 400MW.
A spokesperson for Statkraft previously said the project “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”.
Pre-application planning documents say the location of the project is Tagdale, an area of land to the south west of the Dales Voe industrial base on the outskirts of Lerwick which has been used for decommissioning oil and gas infrastructure.
The site is not too far from Statkraft’s planned Mossy Hill wind farm in between Lerwick and Scalloway, and the associated substation which will be located near to the junction where the A970 meets Ladies Drive.
A first round of consultation events is set to take place on 19 and 20 November in Lerwick and Tingwall, with more expected in the spring.
The project has already been shortlisted for funding from the UK Government.
It has been confirmed that Shetland Islands Council is in line to determine future planning applications for both of Statkraft’s ammonia projects.
This is because the Scottish Government’s Energy Consents Unit deals with generating projects such as wind power and solar over 50MW in capacity, but not schemes like green ammonia.
A Statkraft spokesperson said: “We are currently finalising details with Shetland Islands Council of our public consultation for a new green ammonia scheme at Tagdale.
“We expect to share full details about the event and project soon.”
Hay, however, said Shetland Islands Council (SIC) “really needs to control” what he described as an “industrialisation of Shetland”.
“Their consultation about an energy strategy is long overdue,” he added.
“Once again we have a very large energy company, in this case foreign, seeking to exploit a council which seems to have an open door policy.
“We note yet more, probably meaningless, consultations are to be undertaken.”
For the Scatsta project, landowner Shetland Islands Council stands to receive £1.13 million a year in rent plus community benefit which at today’s value would reach around £2 million a year.
Statkraft also has two other wind farm projects in the pipeline in Shetland – Beaw Field and Energy Isles in Yell.
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