Energy / Ammonia plant expected to be in operation by end of 2029
STATKRAFT has confirmed it is to progress plans for a green ammonia plant near Lerwick after agreeing an option on the site.
Located adjacent to the Hill of Tagdale, the proposed scheme will comprise of an electrolytic hydrogen to green ammonia production facility of up to 80MW.
The project has already been shortlisted for funding by the UK Government, as part of Hydrogen Allocation Round 2.
Statkraft said ammonia is a common ingredient used to produce fertiliser, critical to agricultural food production, and with important applications as a carbon-free fuel.
The company added that the Tagdale project will play an “important role in reinstating domestic ammonia production in the UK”.
It said the green ammonia produced will be used by a wide range of industries, including as a sustainable fuel for marine shipping and to decarbonise fertiliser production, and “in doing so contribute significantly to the UK’s industrial decarbonisation and energy transition goals”.
The project will create approximately 20 new green jobs and will offer opportunities for the upskilling of those already working in oil and gas roles in Shetland.
The company also said this week that it has a desire for the project to support the district heating network.
The project is expected to be operational by the end of 2029.
Ahead of the public consultation concerns about the apparent “industrialisation” through energy developments have reared their head – first from campaign group Sustainable Shetland and then via members of Lerwick Community Council.
Statkraft will hold its initial public exhibitions in Shetland on 19-20 November, with a further round of exhibitions expected early next year, ahead of a planning application submission to Shetland Islands Council.
Because it is not deemed to be a generator of power like wind or solar, the decision on planning lies with the council and not the Scottish Government.
Statkraft is holding an event at the Sound Hall in Lerwick on Wednesday 19 November between 10am and 4pm, and then at the Tingwall Hall from 1.30pm to 7pm the following day.
The company is also planning a much larger electrolytic hydrogen to green ammonia facility located on land adjacent to the disused Scatsta Airport.
Statkraft recently announced that it would stop development of new green hydrogen schemes, although parts of its global portfolio – including “mature projects” such as the two local projects – will be developed further before investors are sought to take them forward.
In addition, Statkraft has three wind farms on Shetland in pre-construction – Mossy Hill near Lerwick, and Energy Isles and Beaw Field on Yell.
Brie Foster, Statkraft’s hydrogen project manager said: “Confirmation of Statkraft’s second Shetland green hydrogen to ammonia project shows the huge potential of the area to be a hub for innovative technologies.
“This project will play an important role in helping deliver food and energy security at home, as well as contribute more widely to the transition to cleaner energy.
“We’re in the early stage of development of our plans and will work closely with local stakeholders and the community in Shetland, as our proposals progress, and I look forward to sharing more details at public exhibitions later in the month.”
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