Statkraft will cease the development of new green hydrogen projects, citing mounting uncertainty in the hydrogen market.
The decision, revealed this week, signals a significant shift in strategy as the company recalibrates its growth focus away from electrolytic hydrogen and toward more mature energy technologies.
The move comes just a year after Statkraft reduced its ambition levels for hydrogen and follows months of volatility in global electrolyzer deployment, investment timelines, and policy implementation across key European markets. According to Statkraft CEO Birgitte Ringstad Vartdal, “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 prioritize growth opportunities in other technologies, and market operations.”
While no new hydrogen initiatives will be pursued, Statkraft will continue to mature selected projects across Norway, Sweden, Germany, the Netherlands, Italy, and the UK. These projects—some of which have secured external funding—may still be realized through partnerships or investments, though the company has clarified it will no longer be the principal driver behind them.
Statkraft’s hydrogen strategy initially targeted hard-to-abate sectors such as steel, shipping, and heavy industry—areas expected to rely on green hydrogen as a decarbonization pathway. Over the past several years, the company had accumulated a pipeline of projects supported by European funding mechanisms and regional decarbonization policies.
However, policy uncertainty, cost inflation in electrolyser supply chains, and delayed offtake agreements have created headwinds. Industry-wide, the levelised cost of hydrogen (LCOH) has remained above target thresholds for widespread adoption, particularly in industrial segments without strong carbon pricing or mandates. This has prompted several developers to either slow down or pause major electrolyser projects in Europe.
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