Statkraft has secured a lease for land near the former Scatsta Airport in Shetland, marking a key step forward in the development of its planned 400MW green hydrogen and ammonia production facility, the company said on Wednesday.
The proposed Shetland Hydrogen Project 2 will use electrolytic hydrogen to produce green ammonia, aimed at supporting decarbonisation efforts in the shipping and fertiliser sectors. The site’s proximity to the Sullom Voe oil terminal and the Shetland Gas Plant will allow it to make use of constrained renewable power by converting excess electricity into hydrogen.
“This is an exciting milestone for the potential to develop green hydrogen and ammonia production in Shetland,” said Stuart Marley, Statkraft’s principal hydrogen project manager. “We will work closely with local stakeholders and the wider Shetland community as we progress this project.”
Statkraft said the facility aligns with the UK’s industrial decarbonisation goals and would benefit from the region’s established energy infrastructure and skilled workforce.
The company currently has three wind farms in pre-construction across Shetland, including Mossy Hill near Lerwick, as well as the Energy Isles and Beaw Field projects on the island of Yell.
The hydrogen and ammonia facility is expected to contribute to the broader integration of renewable energy and provide a flexible solution for energy storage and conversion in an area where grid constraints can limit direct power exports.
