Shell has dropped plans to develop a blue hydrogen plant in Norway due to a lack of demand, according to reports.
The Aukra Hydrogen Hub, set to be developed in collaboration with Aker Horizons and CapeOmega, was expected to produce around 1,200 tonnes of blue hydrogen per day by 2030.
Located near Shell’s Nyhamma gas processing plant, the plant was scheduled to support Norway’s hydrogen roadmap, which aims to make the country a leader in hydrogen production and export.
The news comes shortly after Equinor scrapped its plans to export blue hydrogen from Norway to Germany via pipeline after they too cited a lack of demand, inadequate regulatory framework and high prices.
Read more:Norway’s Equinor scraps plans to export blue hydrogen to Germany
A spokesperson for Shell in Norway reportedly said, “We haven’t seen the market for blue hydrogen materialise and decided not to progress the project.”
The Aukra Hydrogen Hub partnership was due to be renewed this year after it expired in June. However, it was not renewed, meaning Shell boasts no other Norwegian hydrogen project in its portfolio.
August (2024) saw Ørsted shelve its hydrogen-based e-fuels project in Sweden, FlagshipONE, despite having taken a final investment decision (FID).
Read more: High prices, no offtake, insufficient incentives: why Ørsted scrapped FlagshipONE
The firm’s Region Europe CEO, Olivia Breese, told H2 View that continuing to develop the project would not be sustainable due to a lack of offtake demand.
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