Shell cancels the Norway Hydrogen Project due to a lack of Demand

Shell announced on Monday that it had scrapped plans to build a low carbon hydrogen plant along Norway's westcoast due to lack of demand. This comes just days after Equinor canceled a similar project planned in Norway.

Blue hydrogen is a combination of natural gas and carbon capture and storage. It has been hailed as a way to reduce the amount of carbon dioxide in European industry. However, it's more expensive than other methods.

Shell's Norway spokesperson said, "We didn't see the blue hydrogen market materialise so we decided to not progress the project."

Equinor announced on Friday that it had scrapped its plans to export blue hydrogen to Germany and produce it in Norway because it was too costly and insufficiently demanded.

Shell, together with Aker Horizons & CapeOmega planned to produce 1,200 metric tonnes of blue hydrogen per day at the Aukra Hydrogen Hub located near Shell's Nyhamna Gas Processing Plant by 2030.

Shell has no other active hydrogen project in Norway. The spokesperson confirmed that the partnership did not renew when it expired this June.

Norwegian media outlet Energi og Klima was the first to report on this story. (Reporting and editing by Emelia Sithole Matarise; reporting by Nora Buli)

(source: Reuters)