Norway – Shell has decided to discontinue its low-carbon hydrogen project on Norway’s west coast due to a lack of market demand, Reuters has reported.
The British energy giant had envisioned the Aukra Hydrogen Hub as a means to produce approximately 1,200t of blue hydrogen per day by 2030.
This development follows a similar cancellation by Equinor and RWE of a pipeline to export blue hydrogen to Germany.
Blue hydrogen, produced from natural gas with carbon capture and storage, is considered a transitional solution for decarbonising European industry. However, the costs are higher compared with traditional hydrogen production methods.
‘We haven’t seen the market for blue hydrogen materialise and decided not to progress the project,’stated the Shell spokesperson in Norway. The decision not to renew the partnership with Aker Horizons and CapeOmega came after the initial agreement lapsed in June of this year. Currently, Shell does not have any other active hydrogen projects in Norway.
