May 12, 2025 [Oil Price]- Norwegian state-owned power company Statkraft has announced it is halting the development of new green hydrogen projects across Europe, citing increased market uncertainty and limited near-term profitability. The decision affects its entire green hydrogen portfolio, which includes sites in Norway, Sweden, the UK, Germany, the Netherlands, and Italy. However, several ongoing projects will still be matured and structured to prepare for future partnerships with investors, particularly those that have already received public funding.

Statkraft emphasized that it is not abandoning green hydrogen entirely but is strategically scaling back and shifting focus to technologies and markets offering stronger short- and medium-term returns. The decision builds on a 2024 move to lower the company’s hydrogen ambitions. According to CEO Birgitte Ringstad Vartdal, market conditions have worsened, prompting a reallocation of resources to other business segments with more predictable value.

The announcement underscores the broader challenges facing the green hydrogen industry, including high production costs, a lack of regulatory clarity, and uncertain subsidy frameworks, all of which have made investor backing more difficult. Statkraft has not disclosed the level of capital already invested or a timeline for the projects it is still advancing.

Once seen as a pillar of Statkraft’s low-carbon growth strategy, green hydrogen is now viewed as riskier and less commercially viable than previously anticipated. The company remains in dialogue with regional and national authorities to ensure compliance and potential monetization of its partially developed hydrogen assets.

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data