Shell shelves Norway hydrogen project due to lack of demand
23/09/2024 15:51
OSLO, Sept 23 (Reuters) - Shell SHEL.L has scrapped
plans for a low-carbon hydrogen plant on Norway's west coast due
to a lack of demand, the energy company said on Monday, days
after Equinor EQNR.OL cancelled a similar planned project in
Norway.
Hydrogen derived from natural gas in combination with carbon
capture and storage, known as blue hydrogen, has been touted as
a stepping stone to decarbonising European industry and meeting
climate goals, but it is more costly than traditional methods.
"We haven't seen the market for blue hydrogen materialise
and decided not to progress the project," said a spokesperson
for Shell in Norway.
On Friday, Equinor said it scrapped plans to produce blue
hydrogen in Norway and export it to Germany because it was too
expensive and there was insufficient demand.
Together with partners Aker Horizons AKH.OL and CapeOmega,
Shell had planned to produce about 1,200 metric tons of blue
hydrogen a day by 2030 at the Aukra Hydrogen Hub near Shell's
Nyhamna gas processing plant.
The partnership was not renewed when it expired in June this
year and Shell does not currently have other active hydrogen
projects in Norway, the spokesperson said.
The news was first reported by Norwegian media outlet Energi
og Klima.
(Reporting by Nora Buli; Editing by Emelia Sithole-Matarise)
((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))