Statkraft, Europe's largest generator of renewable energy, is moving forward with plans for its Shetland Hydrogen Project 2 after securing a lease agreement with Shetland Islands Council for a site adjacent to the disused Scatsta Airport. The proposed facility will produce green ammonia through electrolytic hydrogen production with a capacity of up to 400MW.

Project Location and Infrastructure

The green hydrogen to ammonia production facility will be located on land near the existing Sullom Voe Oil Terminal and Shetland Gas Plant. The site's proximity to the disused Scatsta Airport provides strategic positioning for the industrial development. Statkraft has secured the necessary land rights through a lease agreement with the local council to proceed with the project planning.

Industrial Applications and Market Use

The green ammonia produced at the facility will serve multiple industrial sectors and decarbonization efforts. The ammonia will function as a sustainable fuel for marine shipping operations, addressing the maritime industry's need for cleaner energy alternatives. Additionally, the production will support the decarbonization of fertilizer manufacturing processes, contributing to the UK's broader industrial decarbonization objectives across multiple sectors.

Renewable Energy Integration

The project addresses the challenge of excess renewable power generation that cannot be utilized by the existing electrical grid system. The facility will convert this surplus renewable energy into hydrogen through electrolytic processes, providing a storage and utilization solution for otherwise wasted clean energy production. This approach maximizes the value of renewable energy resources in the region.

Statkraft operates three wind farms on Shetland that are currently in pre-construction phases. The Mossy Hill wind farm is located near Lerwick, while the Energy Isles and Beaw Field projects are situated on Yell. These renewable energy installations will contribute to the power supply for the hydrogen production operations.

Development Timeline and Community Engagement

Stuart Marley, Statkraft's Principal Hydrogen Project Manager, characterized the lease agreement as an exciting milestone for green hydrogen and ammonia production development in Shetland. The project combines the region's renewable energy resources with innovative hydrogen production technology. Marley emphasized the area's historical connections to energy production, noting the availability of experienced regional talent to ensure safe and efficient project operations.

The company plans to leverage this existing expertise during the facility's development and operational phases. The project remains in early development stages, with Statkraft committed to engaging closely with local stakeholders and the broader Shetland community as planning progresses. This collaborative approach reflects the company's recognition of the project's significance to the local area and the importance of community involvement in major industrial developments.

The Shetland Hydrogen Project 2 represents Statkraft's expansion into hydrogen production technology while utilizing the renewable energy infrastructure already established in the region. The facility's development timeline and specific construction details will be determined as the project advances through the planning and permitting processes.

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