OSLO – Shell (NYSE: SHEL) 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 (NYSE: EQNR) canceled 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 decarbonizing European industry and meeting climate goals. However, it is more costly than traditional methods.
“We haven’t seen the market for blue hydrogen materialize and decided not to progress the project,” said a spokesperson for Shell in Norway.
On Friday, Equinor (NYSE: EQNR) 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 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 spokesperson said that the partnership expired in June this year and was not renewed, and Shell (NYSE: SHEL) currently does not have other active hydrogen projects in Norway.
Norwegian media outlet Energi og Klima first reported the news.
(Source: Reuters)
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