Norwegian Energy Giant Statkraft Temporarily Shelves Green Hydrogen Expansion, Including German Projects
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Statkraft halts development of new hydrogen initiatives - Hydrogen production ventures halted by energy corporation Statkraft.
Norwegian power supply colossus Statkraft, also active in Lower Saxony, has decided to put its expansion of new green hydrogen projects on hold, temporarily. The company, headquartered in Düsseldorf, revealed that "certain existing projects in Europe will continue to be developed before potential investors are secured for realization." This pause in development comes due to escalating uncertainties surrounding the growth of the hydrogen economy. Several media outlets have reported on this news.
This halt also applies to two projects in Germany, as a Statkraft representative confirmed in response to an inquiry - at the existing power plant site in the East Frisian town of Emden, Statkraft intends to install two electrolyzers for hydrogen production.
The Reasons Behind Statkraft's Decision
"Following our reduction in the development of green hydrogen ambitions last year, we are now witnessing greater market uncertainty and a further delayed profitability expectation," said CEO Birgitte Ringstad Vartdal in a statement. "Consequently, Statkraft has decided to pause the development of new green hydrogen projects. In the future, we will focus on growth prospects in alternative technologies and market activities."
At the power plant site in Emden, Statkraft plans various initiatives, including constructing an electrolyzer for hydrogen production with a capacity of 200 megawatts, as well as a smaller pilot plant with a capacity of 10 megawatts. The spokesperson stated that the continuation of the Emden hydrogen projects would be contingent on securing investors. They went on to say that the market was currently being examined, and initial talks are underway.
What's Next for the Emden Projects
Statkraft has already garnered funding in excess of 100 million euros from the EU Innovation Fund for the 200-megawatt electrolyzer, as per their statements. The 10-megawatt pilot plant is currently in the final planning stages, the spokesperson said. The initial tentative plans suggest a possible construction commencement this year.
Hydrogen generated using renewable energy is expected to play a significant role in climate protection. To split water into its constituent elements, hydrogen, and oxygen, during electrolysis, a large amount of energy is required. The Lower Saxon North Sea coast is considered an ideal location for the hydrogen economy, thanks to the abundance of electricity from wind power both on land and at sea.
- Energy Conglomerate
- Power Supply
- Hydrogen
- Emden
- Lower Saxony
- Düsseldorf
- East Frisia
- Energy Transition
- Europe
- Germany
Additional Insights:
- Statkraft's decision to halt green hydrogen projects is influenced by several contributing factors: rising costs, market uncertainty, lack of regulatory clarity, geopolitical volatility, and a strategic shift towards other technologies and market activities [1][4][5].
- Green hydrogen projects may prove challenging as worldwide investments in the sector are plagued by uncertainty, and investors seek clarity regarding cost-effective avenues for deployment [4][5].
- The energy sector is susceptible to both market and geopolitical volatility, which can impact the stability of projects and investments [4].
- The overall pause on new green hydrogen developments doesn't necessarily signify a lack of faith in the technology, but rather a tactical move to prioritize growth opportunities in other sectors [3][5].
- Statkraft, the Norwegian energy conglomerate headquartered in Düsseldorf, has temporarily halted the expansion of its green hydrogen projects due to escalating uncertainties and delayed profitability expectations within the hydrogen economy.
- This decision affected even two projects in Germany, one of them being the plan to install two electrolyzers for hydrogen production at the power plant site in Emden, Lower Saxony.
- Despite temporarily pausing new green hydrogen project developments, Statkraft continues to evaluate the market and engage in initial talks, with the potential continuation of the Emden hydrogen projects contingent on securing investors.
- Statkraft had already received over 100 million euros in funding from the EU Innovation Fund for the 200-megawatt electrolyzer at the Emden site, and the 10-megawatt pilot plant is currently in the final planning stages.
- Hydrogen generated using renewable energy is expected to play a significant role in climate protection, particularly in regions like Lower Saxony and East Frisia, which boast an abundance of wind power both on land and at sea.