Located on land adjacent to the unused Scatsta Airport, Statkraft’s Shetland Hydrogen Project 2 will use electrolysis to produce green hydrogen and convert it into green ammonia at the facility.

Statkraft is developing three wind farms on the Shetland Islands, with excess power that would otherwise be wasted, set to produce green hydrogen – storing surplus wind energy for later use or conversion into green ammonia.

The acquired land is also located close to two major energy facilities on the Shetland Islands in Scotland – the Sullom Voe Oil Terminal, one of the largest oil terminals in Europe connected to the North Sea Fields, and the Shetland Gas Plant, a major natural gas processing facility.

The strategic location stands to benefit from existing industrial infrastructure, potentially supporting efficient and scalable green ammonia production.

“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,” explained Stuart Marley, Statkraft’s Principal Hydrogen Project Manager.

The project progression in Scotland comes despite Statkraft pausing new hydrogen developments amid market uncertainty. The company said last May it would not develop any new green hydrogen projects.

Nevertheless, Statkraft said it would continue maturing selected projects, such as the Shetland Hydrogen Project 2. However, its pause is likely to affect its plans of developing 2GW of green hydrogen production capacity by 2030.