Statkraft ceases green hydrogen development across all markets

European renewables developer Statkraft has announced its decision to stop developing new green hydrogen projects across all markets.

The company is however planning to continue developing its existing mature portfolio of projects in the UK and will seek investors to take them into construction and operation.

Kevin O’Donovan, Statkraft’s UK managing director said: “Statkraft has decided to end development of new green hydrogen projects across our portfolio...We are committed to continuing with the other technologies and services we are well known for, including our leading markets and optimisation activities.”

According to Statkraft, uncertain market conditions are to blame for the decision.

In its Q1 results, Statkraft stated that: "While the underlying drivers remains strong and the energy transition continues, the state of the energy markets and geopolitical environment has become more volatile. Statkraft continues to adapt to these changes and is assessing strategic and operational adjustments..."

Have you read?
Scottish government awards $4.5m to eleven hydrogen projects
Three new hydrogen plants planned for industrial complex in Finland

Last year, Statkraft opted for a strategic refocus, reducing the number of technologies in its portfolio. This resulted in the company divesting the onshore wind, solar and battery business in the Netherlands and Croatia, and the hydropower and solar assets in India. It also divested the district heating business and is finding new investors in the biofuels company Silva Green Fuel and the EV charging company Mer.

The aim of the refocus was to build scale and strengthen competitiveness in specific markets that hold more value.

Said Birgitte Ringstad Vartdal, Statkraft CEO: “...Statkraft will continue to adapt our activities in light of the uncertainty and the fact that we currently have more profitable renewables projects than we have funding for. Developing a flexible portfolio based on our competitive strengths and prioritising the best projects to invest in is thus a key priority,”

Market activities related to hydrogen will continue to be part of Statkraft’s portfolio, they confirmed in release.