Norway state-owned company Statkraft has halted new hydrogen developments, blaming ongoing market uncertainty.
The move from one of Europe’s largest renewable energy producers is another blow for the developing hydrogen sector.
Statkraft said parts of its portfolio would be “further matured” before seeking investors to try to realise the projects.
Birgitte Ringstad Vartdal, President and CEO of Statkraft, said, “Several projects have received substantial external funding opportunities, and the company is working with authorities to ensure their progression.
“After reducing the ambition level on green hydrogen development last year, we are experiencing even more uncertainty in the market.”
She said the company would prioritise growth opportunities in other technologies and markets.
“Developing a flexible portfolio based on our competitive strengths and prioritising the best projects to invest in is … a key priority,” she added.
Statkraft has confirmed it continues to believe in the long-term future of green hydrogen and its importance in reducing emissions from carbon-intensive industries.
On a visit to Oslo this week, UK Energy Secretary Ed Miliband secured a Green Industrial Partnership with Norwegian counterparts Ministers Terje Aasland and Cecilie Myrseth and met with Norway’s Prime Minister Jonas Gahr Støre. The North Sea could potentially store up to 78 billion tonnes of carbon dioxide and provide up to 120GW of offshore wind generation.
The news coincided with the company announcing net operating revenues of NOK15.8bn in Q1 2025, down from NOK19.6bn in Q1 2024, although net profit was stable at NOK6.8bn.
To listen to the recent ‘Where did it go wrong for hydrogen?’ 1895 podcast, click here.
