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Statkraft Abandons Hydrogen Project – A Sobering Signal for the Sector

Statkraft—Europe’s largest producer of renewable energy—has scrapped its flagship green hydrogen project, also terminating a key electrolyser contract with Nel ASA. The move raises serious questions about the commercial feasibility of green hydrogen, despite its prominent role in global decarbonisation narratives.

Statkraft’s exit is particularly impactful given its stature: the Norwegian state-owned utility operates across 20+ countries and had positioned hydrogen as a strategic pillar in its clean energy expansion. The cancellation, reported by Norwegian media, is a clear signal that optimism alone cannot sustain the hydrogen economy without robust business cases and clear demand.

Nel ASA, the century-old Norwegian electrolyser pioneer, is also affected. Once considered a linchpin in Europe's hydrogen supply chain, Nel’s role in the aborted project highlights the risks facing the sector’s industrial backbone.

The decision underscores deeper structural issues—chiefly, high production costs, slow infrastructure buildout, and limited offtake certainty. While policymakers and investors remain bullish on hydrogen, Statkraft’s move is a timely reminder: viability must match ambition.

This development doesn’t spell the end for green hydrogen, but it does demand a re-evaluation of market readiness, financing frameworks, and strategic alignment. The sector now faces a critical moment of reflection and recalibration.