Statkraft, Europe’s largest generator of renewable energy, is to take forward plans for its Shetland H₂ Project 2, after agreeing a lease on a site owned by Shetland Islands Council.

The proposed scheme is an electrolytic H₂ to green ammonia production facility of up to 400 MW, on land adjacent to the disused Scatsta Airport which is near the existing Sullom Voe Oil Terminal and Shetland Gas Plant.

The green ammonia produced will be used by a wide range of industries, including as a sustainable fuel for marine shipping and to decarbonize fertilizer production, and in doing so contribute significantly to the UK’s industrial decarbonization goals. 

The construction of schemes like Shetland H₂ Project 2 will allow excess renewable power that cannot be utilized by the grid to be transformed into H₂. Statkraft has three wind farms on Shetland in pre-construction, Mossy Hill near Lerwick, and Energy Isles and Beaw Field on Yell.

Stuart Marley, Statkraft’s Principal H₂ Project Manager, said, “This is an exciting milestone for the potential to develop green H₂ and ammonia production in Shetland. This scheme offers an opportunity to combine Shetland’s renewable resources with innovative technology. The historic links with energy production mean there is a wealth of talent in the region to draw on to ensure projects are run safely and efficiently. While we are currently in the early stages of development, we will work closely with local stakeholders and the wider Shetland community, as we progress this project.”