Norwegian energy company Statkraft has halted new hydrogen developments across its European portfolio due to “increased uncertainty in the market”.
Statkraft, which will celebrate its 130th anniversary later this year, will now stop developing new projects in Norway, Sweden, the UK, Germany, the Netherlands, and Italy. Parts of its portfolio will be matured before seeking investors to realise the projects.
This comes as the organisation, which has deep ties in the UK’s renewable energy industry, posted net operating revenues of NOK15.8 billion (£1.14 billion) in the first quarter of 2025, compared to £1.4 billion in the same period last year. For Q1 2025, the company also posted a profit of £492 million.
Detailed within the company’s first quarter financial results, Statkraft noted that geopolitical uncertainty has led to an increasingly volatile market, forcing the company to adapt to the new market. Hydrogen has become a casualty in the shift in strategy.
Birgitte Ringstad Vartdal, president and CEO of Statkraft, said the organisation’s shift away from green hydrogen will see the company prioritise further growth in other technologies and market operations.
“After reducing the ambition level on green hydrogen development last year, we are experiencing even more uncertainty in the market. Therefore, Statkraft has decided to stop new development of green hydrogen and in the future we will prioritise growth opportunities in other technologies, and market operations,” Vartdal said.
Statkraft continues rollback of its renewable energy vision
For Statkraft, this represents the second successive rollback in its renewable energy targets in as many years. Last year, Current± reported that the Norwegian energy company had reduced its targets for building solar PV, battery energy storage systems (BESS) and wind farms from 2026.
The target for solar PV was adjusted from 2.5-3GW to 2-2.5GW. Additionally, the offshore wind targets had been significantly reduced, dropping from 10GW to between six and 8GW by 2040.
The organisation announced its first green hydrogen project in the UK in 2022, with plans to develop the Trecwn Green Energy Hub in Pembrokeshire, south-west Wales.
The project, which will be developed on a disused rail transfer shed, is expected to produce approximately three tonnes of green hydrogen per day. To provide the renewable energy needed for green hydrogen production, the electrolyser will be paired with three turbines and ground-mounted solar arrays.
Following this, Statkraft started to expand its role in the UK green hydrogen ecosystem. For instance, in 2023, the organisation embarked on a joint venture with alternative assets investment manager Foresight and HyNet founding partner Progressive Energy to form Grenian Hydrogen Limited. It is unknown how Statkraft’s rollback will impact the joint venture.
The UK’s green hydrogen prospects
Hydrogen has been touted as a vital resource in the nation’s decarbonisation, with a legislated target to secure 5GW of green hydrogen production and 10GW of low-carbon hydrogen (also known as blue hydrogen) by 2030.
The clean energy carrier can be used in various sectors, including transportation through hydrogen-powered internal combustion engines (ICEs) and fuel cells, energy storage, and, perhaps, its most likely role, decarbonising hard-to-abate sectors such as the steel industry.
Despite the technology’s potential and a surge of interest earlier this decade, the market has struggled to develop. Experts point to a lack of investment as a primary reason for the global sector’s failure to achieve its intended position. This can be seen in Australia, where Origin Energy, one of the major energy companies in the country, has exited the hydrogen industry altogether last year.
However, a report from the UK’s Hydrogen Energy Association (HEA), released last week, presented opportunities to “smooth the path” for the hydrogen market in the future.
One of the report’s primary recommendations was that the UK government take inspiration from the European Union (EU) and how it is helping to attract early investment in its budding hydrogen sector.
The economic bloc has set lofty targets for hydrogen production. The EU aims to produce 10 million tonnes of hydrogen domestically and import a further 10 million tonnes by 2030. This import target could provide the UK hydrogen industry with an economic opportunity to become a key supplier of green hydrogen to the continent.
More specifically, the EU has introduced several support mechanisms and frameworks to incentivise investment within the member states.
Under the Renewable Energy Directive II (REDII), the EU has established targets to increase the use of green hydrogen in industry and transport. By 2030, up to 42% of all hydrogen used in industry must come from Renewable Fuels of Biological Origin (RFNBOs), which will increase to 60% by 2035.
The HEA believes a similar approach should be adopted in the UK, claiming the scheme has sent a “clear incentive to increase the share of green hydrogen in heavy industry to avoid penalties” and has triggered a surge in hydrogen demand.
For those interested in the UK hydrogen market, our publisher, Solar Media, will host the Green Hydrogen Summit UK on 1-2 July in London. You can book your tickets here.
