Letters / Uneconomic and unviable?
Open letter to all Shetlanders and their representatives.
Further to Shetlanders’ recent concerns regarding Statkraft’s proposed “green” ammonia plant at Tagdale, using hydrogen, derived from wind turbines and nitrogen from air, the Financial Times (26 February) reports that the chief executive of Yara, (Europe’s biggest fertiliser group) Svein Tore Holseth, is quoted saying, “green” ammonia was not yet a viable alternative to “grey” ammonia – which is derived from fossil fuels (in his case conveniently from Norwegian natural gas) – and “there will be no green transition with red numbers”.
Is Statkraft locally, the SIC and Shetlanders aware of that? If not, why not?
Yara (the former Norske Hydro, and a sister Norwegian company to Statkraft) has access to (cheap!) excess hydro power generated electricity – and no need to build on/off shore wind turbines in Norway – and operates the large fertiliser complex at Heroya, both companies having an association with AkerBP at the Narvik Ammonia plant.
The above indicates that the Tagdale plant will not be economic, and should in turn point out out that a larger ammonia plant proposed at Scatsta Sullom Voe (for which Statkraft still has to find co-investors) will also not be viable.
Unless of course a long term supply of natural gas becomes available – from such as – Victory/Shell Clair/AkerBP, Ithaca/Cambo, Rosebank – through the Laggan pipeline to the SGP [Shetland Gas Plant].
Surely it follows that producing methanol (CO2+H2 – boiling point +67c and easily shipped/exported from Sullom) – where Shetland would benefit from harbour dues – is a better option than producing ammonia at minus 33c at Dales Voe.
Methanol in turn may need a SVT jetty to be upgraded to import CO2 shipments at minus 50C.
Another alternative could be to produce CAN Calcium Amomium Nitrate at Sullom (and a bagging plant) per my previous information regarding the plant at Atome Paraguay.
Cecil Robertson
Inverness
