Norwegian energy company Statkraft announced it is putting on hold all development of new projects for producing “green hydrogen”.
On May 8, the company cited “increased uncertainty in the market” as its reason for halting all new green projects.
It will maintain its existing projects for the time being while it seeks investors to back them.
“After reducing the ambition level on green hydrogen development last year, we are experiencing even more uncertainty in the market,” said Birgitte Ringstad Vartdal, Statkraft’s president and CEO.
“Therefore, Statkraft has decided to stop new development of green hydrogen and going forward we will prioritise growth opportunities in other technologies, and market operations,” she added.
Uncertainty about regulatory frameworks, customer demand, and rising production costs has intensified, said Vartdal.
This has led the company instead to prioritise its investments in more mature renewable technologies such as solar battery systems.
The company said it continued to believe in the long-term future of green hydrogen and its importance in reducing emissions from carbon-intensive industries.
The European Union has unrealistic goals for renewable hydrogen energy, despite close to €20 billion in funding, the EU’s financial watchdog has said. https://t.co/X6L96XfPTW
— Brussels Signal (@brusselssignal) July 17, 2024
Statkraft has been one of Europe’s largest producers of renewable energy, mainly due to its numerous hydroelectric power plants. It is fully owned by the Norwegian State.
Statkraft’s hydrogen portfolio includes projects in Scandinavia, the UK, Germany, the Netherlands, and Italy.
One of its biggest hydrogen projects was the construction of a 200 megawatt (MW) electrolysis plant in Emden, Germany.
The facility had aimed to produce up to 20,000 tonnes of green hydrogen every year – for which Statkraft was set to receive a subsidy of up to €107 million from the EU’s Innovation Fund.
The announced hiatus is another setback for Europe’s green hydrogen sector.
In April 2025, Austrian energy company OMV announced it was shutting down its network of hydrogen gas stations due to lack of demand.
According to industry news service Fuel Cells Works, Statkraft’s decision underscored broader industry concerns over the commercial feasibility of green hydrogen amidst volatile economic conditions and shifting geopolitics.
“Green hydrogen” is hydrogen gas produced through electrolysis of water, powered by renewable energy sources like wind or solar power.
The idea behind it is to convert highly variable amounts of electricity generated by wind and the sun into a more storable, reliable energy source, in liquified hydrogen.
Danish electrolyser manufacturer Green Hydrogen Systems has announced a plan to file a petition for court restructuring because it could not secure sufficient funding to keep its business running. https://t.co/nKWzNyIuNE
— Brussels Signal (@brusselssignal) March 11, 2025
