Norwegian Giant Statkraft Pauses New Hydrogen Ventures due to Market Uncertainty
Statkraft suspends upcoming hydrogen initiatives - Hydrogen ventures halted indefinitely by Statkraft, the power company.
In a surprising move, energy conglomerate Statkraft - active in Lower Saxony - has put on hold the development of fresh hydrogen initiatives. The company, situated in Düsseldorf, declared that certain existing European projects will continue to be advanced before potential investors are approached for their realization. The announcement cited a surge in doubt regarding the growth of the hydrogen economy as the major cause for this change. Multiple media outlets have reported on this news.
This development impacts two projects within Germany, as a company representative confirmed in response to an inquiry. Statkraft intends to establish two electrolyzers for hydrogen production at the present power plant site in the East Frisian town of Emden.
Why Statkraft is Changing Course
"After scaling back our green hydrogen ambitions last year, we are now facing a higher level of uncertainty in market deployment and a further delayed expectation of profitability," said CEO Birgitte Ringstad Vartdal in a statement. "Therefore, Statkraft has chosen to stop the development of new green hydrogen. Moving forward, we will prioritize growth potential in other technologies and market endeavors."
The company plans several initiatives at the power plant site in Emden, including a 200-megawatt electrolyzer for hydrogen production. In addition, a smaller pilot plant with a capacity of 10 megawatts is envisioned. Recent reports indicate that the continuation of the Emden hydrogen projects may be subjected to investor scrutiny. The representative stated that the market is being assessed, and preliminary discussions have begun.
The Future of the Emden Projects
Statkraft has already secured funding of over 100 million euros from the EU Innovation Fund for the 200-megawatt electrolyzer, according to their statements. The 10-megawatt pilot plant is currently in the final planning stage, the representative noted. Current plans still anticipate a possible groundbreaking this year.
Hydrogen generated from renewable energy sources is anticipated to significantly aid climate protection. To split water into its constituent components - hydrogen and oxygen - through electrolysis, a substantial amount of energy is required. The Lower Saxony North Sea coast is regarded as a promising region for the hydrogen economy, particularly because a significant amount of electricity is generated from wind power both on land and at sea.
- Energy Giant
- Energy Supply
- Hydrogen
- Emden
- Lower Saxony
- Düsseldorf
- East Frisia
- Energy Transition
- Europe
- Germany
- Statkraft, an energy conglomerate based in Düsseldorf and active in Lower Saxony, has paused the development of new hydrogen ventures due to market uncertainty, impacting projects in Emden.
- The CEO of Statkraft, Birgitte Ringstad Vartdal, stated that the company is scaling back their green hydrogen ambitions due to increased market uncertainty and a delayed expectation of profitability.
- Statkraft plans to establish two electrolyzers for hydrogen production at the power plant site in Emden, with initiatives including a 200-megawatt electrolyzer and a smaller pilot plant with a capacity of 10 megawatts.
- The 200-megawatt electrolyzer project at the Emden power plant site has secured funding of over 100 million euros from the EU Innovation Fund.
- Hydrogen generated from renewable energy sources has potential to significantly aid climate protection, especially in regions like Lower Saxony, where a significant amount of electricity is generated from wind power.
