Statkraft Launches Ambitious 400 MW Green Hydrogen and Ammonia Project to Power Shetland’s Clean Energy Future

Image Source: Statkraft

Statkraft, Europe’s leading renewable energy producer, has unveiled plans for a landmark green hydrogen and ammonia production facility in Shetland. The project, located at the site of the decommissioned Rova Head power station, is set to deliver up to 400 megawatts (MW) of electrolyzer capacity. The development is expected to play a pivotal role in decarbonizing hard-to-abate sectors such as maritime transport and heavy industry while also strengthening Shetland’s clean energy ecosystem.

The proposed facility will utilize renewable electricity to produce green hydrogen through electrolysis, a process that emits no greenhouse gases. A portion of this hydrogen will be converted into green ammonia, offering a low-carbon fuel alternative for local and export markets. This clean fuel could significantly reduce emissions in shipping and industrial operations, while also helping balance the electricity grid during periods of high renewable generation.

According to Statkraft, Shetland offers a uniquely strategic location due to its strong wind resources, existing grid infrastructure, and accessibility to export markets. The company stated, “Shetland has been an energy island for over 40 years. As we look to the next chapter in Shetland’s energy story, Statkraft sees enormous potential for Shetland to play a leading role in the UK’s transition to net zero.”

The project will be developed in collaboration with the Shetland Islands Council and local stakeholders, with formal planning expected to begin in 2025. If approved, construction could begin by 2027, with the hydrogen and ammonia facility becoming operational by the end of the decade.

Statkraft emphasized its intention to contribute to local economic development, noting that the project could create skilled jobs, boost infrastructure investment, and attract further green industries to the region. “We are committed to delivering this project responsibly and sustainably, working closely with the community and local supply chain to ensure long-term benefit,” the company said in a statement.

The hydrogen and ammonia produced will be available for a wide range of applications, from fueling ships and industrial plants to providing grid-balancing support. These products will be delivered via trucks and ships, enabling both local and international distribution.

Statkraft’s Shetland hydrogen initiative reflects a broader European movement toward low-carbon fuels and clean industrial technologies. As the company continues to invest in green hydrogen and ammonia infrastructure, this project underscores its leadership in accelerating the energy transition through innovation and community partnership.

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