Statkraft halts new green hydrogen projects citing market uncertainty

Norwegian renewable energy supplier Statkraft has decided to halt new green hydrogen developments, citing increased uncertainty in the market.

While new projects will not be pursued, parts of the existing portfolio will reportedly continue to be matured in preparation for potential investment.

As disclosed, several projects have received external funding opportunities, and the company is working with authorities to ensure their progression.

Birgitte Ringstad Vartdal, President and CEO of Statkraft, said: “After reducing the ambition level on green hydrogen development last year, we are experiencing even more uncertainty in the market. Therefore, Statkraft has decided to stop new development of green hydrogen and going forward we will prioritise growth opportunities in other technologies, and market operations.”

Statkraft noted it continues to believe in the long-term future of green hydrogen and its importance in reducing emissions from carbon-intensive industries, adding that market activities related to hydrogen will continue to be part of its portfolio.

To remind, just a few days ago, it was revealed that Statkraft had called off its 40 MW alkaline electrolyzer contract with compatriot hydrogen technology company Nel. Current market conditions were mentioned as the reason behind the cancellation.

The deal between the two parties was signed in January 2023, and at the time, the companies reported that the electrolyzer stacks would be produced at Nel’s manufacturing plant at Herøya and used for the production of renewable hydrogen in one of Statkraft’s projects.