Norway’s state-owned power company, Statkraft, has announced a halt on the development of new green hydrogen projects throughout Europe, citing increased market uncertainty and limited near-term profitability as the main reasons for the decision. This suspension will impact the company’s entire green hydrogen portfolio across multiple countries, including Norway, Sweden, the UK, Germany, the Netherlands, and Italy. Despite pausing new projects, Statkraft will continue to advance several ongoing initiatives, particularly those backed by public funding, and aims to prepare them for future investor partnerships. CEO Birgitte Ringstad Vartdal highlighted a strategic shift towards technology and markets expected to yield stronger short- and medium-term returns, which follows a broader move to reduce hydrogen ambitions earlier in 2024.
The decision reflects the current challenges facing the green hydrogen sector, including high production costs and a lack of regulatory clarity, which have made it increasingly difficult for investors to support new ventures. Statkraft has not disclosed the level of capital that is already invested in these hydrogen projects or a specific timeline for the ongoing developments. This reallocation of resources indicates a strategic pivot for Statkraft, moving away from what was once a cornerstone of their low-carbon growth plans, and underscores the necessity to engage in dialogue with authorities for compliance and potential monetization of their partially developed hydrogen assets.