Shell has decided to cancel its plans to build a low-carbon hydrogen plant on Norway’s west coast.
This decision comes after years of planning and is mainly due to a lack of sufficient demand for blue hydrogen, which is hydrogen produced using natural gas combined with carbon capture and storage. Blue hydrogen is seen as a transitional solution to help decarbonize industries in Europe and achieve climate goals. However, it costs more than traditional production methods.
A spokesperson for Shell in Norway stated, “We haven’t seen the market for blue hydrogen materialize and decided not to progress the project.”
This announcement closely follows Equinor’s decision to abandon a similar blue hydrogen project in Norway. Equinor had intended to produce and export blue hydrogen to Germany but found the project too costly and lacking in demand.
Shell had been working with partners Aker Horizons and CapeOmega to produce about 1,200 metric tons of blue hydrogen daily by 2030. The project was centered on the Aukra Hydrogen Hub, located near Shell’s Nyhamna gas processing plant. However, the partnership agreement expired in June this year and was not renewed. Currently, Shell does not have any other active hydrogen projects in Norway.
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