Council will seek to engage with new owner of Statkraft projects
The SIC owns the land at Scatsta on which a proposed green ammonia production facility could be built
SHETLAND Islands Council (SIC) chief executive Maggie Sandison says the local authority will seek to engage with the new owner of the Scatsta green ammonia plant project.
As previously reported, Statkraft has sold the project to Norwegian-owned company Kentron Green Nordic AS.
It has also sold the proposed Tagdale ammonia plant project near Dales Voe.
The SIC has a direct interest in the Scatsta project given it is the landowner.
It confirmed last year that the lease would bring an annual income to the SIC of £1.13 million.
There would also be a fixed community benefit payment to the council of £5,000 per megawatt of installed capacity – the equivalent of around £2 million per annum at today’s value.
Responding to Thursday’s news about Statkraft selling the projects, Sandison said the SIC was aware for some time of Statkraft’s intention to divest from the hydrogen market.
Statkraft confirmed last year that it would not pursue any new hydrogen projects, and would seek investors for its existing portfolio in the UK.
“Our next step is to engage with the new company about their intentions around work in Shetland,” Sandison said.
“Obviously some of that will be talking around our expectations around the development charter and the ongoing expectation we have that we have built into the agreement around the use of our assets.”
The Scatsta project involves plans for an electrolytic hydrogen to green ammonia production facility of up to 400MW, on land adjacent to the disused Scatsta Airport.
Statkraft previously said ammonia produced would be used by a wide range of industries, including as a sustainable fuel for marine shipping and to decarbonise fertiliser production.
The project, which has yet to reach the planning stage, has previously received government funding.
In a statement, Stephan Klepsland of Kentron Green Nordic AS said the company was pleased to announce the successful acquisition of Statkraft’s UK hydrogen portfolio.
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“Kentron Green Nordic AS is part of a group currently developing a portfolio of wind farms and green ammonia projects, including Neptun Glomfjord green ammonia and Neptun Tromsø.
“Site preparation works have already been completed at Neptun Glomfjord which is expected to enter operations in 2029.
“The experience we’re bringing from our projects in Glomfjord and Tromsø puts us in an ideal place to continue the development of Statkraft’s clean ammonia projects in Shetland.
“We are really excited to continue developing these projects alongside the Shetland community and to bring our experience from the successful development of similar projects to re-establish domestic ammonia production in the UK with the help of Shetland’s world class renewable resources and highly competent local workforce.”
The Tagdale project, located near Dales Voe on the outskirts of Lerwick, would see ammonia produced from wastewater, atmospheric nitrogen and renewable energy.
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