Statkraft shares plans for green hydrogen scheme in Shetland
Statkraft, Europe’s largest generator of renewable energy, has shared plans to develop a green hydrogen scheme in Shetland.
The proposed Shetland Hydrogen Project 2 is an electrolytic hydrogen to green ammonia production facility, and would facilitate up to 400MW of green hydrogen. Statkraft has agreed on a lease for the land adjacent to the disused Scatsta Airport, near the Shetland Gas Plant.
Stuart Marley, Statkraft’s Principal Hydrogen Project Manager, said, “This is an exciting milestone for the potential to develop green hydrogen and ammonia production in Shetland.
“This scheme offers an opportunity to combine Shetland’s renewable resources with innovative technology.
“The historic links with energy production mean there is a wealth of talent in the region to draw on to ensure projects are run safely and efficiently.”
What does the scheme involve?
Green ammonia is a renewable gas, which is often used to make agricultural fertilisers. The Shetland Hydrogen Project 2 would use hydrogen produced through electrolysis and nitrogen separated from the air to create green ammonia.
The hydrogen and nitrogen would be fed into the Haber-Bosch process, which uses high temperature and pressure to turn the two chemicals into ammonia. This is an 100% renewable process, unlike the most commonly used ammonia production process, which uses methane.
Community benefits
Statkraft’s new green hydrogen scheme would support the decarbonisation of fertiliser production, which is predicted by the International Fertiliser Association to account for a whopping 1.3% of global CO2 emissions.
The scheme would also allow excess renewable power that cannot be used by the grid to be transformed into hydrogen, reducing waste.
The new lease will bring an annual income of £1.13 million annually for Shetland, as well as a fixed Community Benefit payment to the Council of £5,000 per MW installed capacity. Further income is expected from the shipment of products through Sullom Voe harbour, and Shetland residents will see job opportunities open up as development continues.
Council Leader Emma Macdonald said, “This project aligns closely with the principles we recently approved in ‘A Fair Share for Shetland’, which aims to ensure our islands and our community benefit as much as possible from the development of renewable energy projects in our area.”
“There are a number of renewable projects either underway or in planning for Shetland, and it is critically important that we as a Council do what we can to ensure the isles see a benefit if the projects proceed.”
A change of tune
In May, Statkraft announced a pause in the development of green hydrogen projects due to “disappointing” results in the sector. However, the new Shetland Hydrogen Project 2 marks a notable change in tune.
Statkraft is currently developing a number of green hydrogen projects in the UK, including a proposal for green hydrogen production at Hunterston port in Scotland. Its Trecwn green hydrogen project in Wales is receiving funding from the UK government’s net zero hydrogen fund.
What’s next?
Before seeking investors for the Shetland Hydrogen Project 2, Statkraft said it plans to continue developing other mature projects, such as the Shetland proposal to the Second Hydrogen Allocation Round. This would provide funding through the Hydrogen Production Business Model.
Stuart Marley, Statkraft’s Principal Hydrogen Project Manager, says, “While we are currently in the early stages of development, we will work closely with local stakeholders and the wider Shetland community, as we progress this project.”
