August 12, 2025
Statkraft has confirmed plans to advance its Hydrogen Project 2 in Shetland, UK, following the signing of a lease agreement with Shetland Islands Council.
The project will see the development of an electrolytic hydrogen to green ammonia production facility of up to 400MW, located on land adjacent to the disused Scatsta Airport, near the Sullom Voe Oil Terminal and Shetland Gas Plant. The facility aims to produce green ammonia for a range of applications, including as a sustainable marine fuel, in the decarbonisation of fertiliser production, and in other industrial uses.
The project will also enable excess renewable energy, which cannot be exported via the grid, to be converted into hydrogen, maximising the value of Shetland’s renewable resources.
Statkraft is currently progressing three wind farms in Shetland, Mossy Hill near Lerwick, and Energy Isles and Beaw Field on Yell, which are expected to play a key role in powering the hydrogen production process. By integrating renewable generation with green hydrogen and ammonia production, Shetland Hydrogen Project 2 represents a significant step towards a cleaner, more sustainable energy future.
The historic links with energy production mean there is a wealth of talent in the region to draw on to ensure projects are run safely and efficiently. While we are currently in the early stages of development, we will work closely with local stakeholders and the wider Shetland community, as we progress this project
… said Stuart Marley, Statkraft’s Principal Hydrogen Project Manager.
