Vattenfall Ditches Project to Produce Hydrogen From Offshore Wind

Swedish utility Vattenfall is scrapping a project to explore the possibilities of hydrogen production on offshore wind farms and transportation to shore, nearly two years after it began.?

The HT1 Project was designed around Vattenfall’s European Offshore Wind Development Centre off the coast of Aberdeen, Scotland, and was partly funded by the UK’s Department for Energy Security and Net Zero through the Low Carbon Hydrogen Supply 2 funding program.?

“Having tested the development phase for decentralised offshore hydrogen production, and in light of other industry advances, Vattenfall has now taken the decision to conclude the project,” Vattenfall said on Thursday, adding that it would continue to explore fossil fuel-free hydrogen production.

The HT1 project has helped the creation of a new regulatory and consenting regime by the UK Government for offshore hydrogen transportation and storage, Vattenfall said.   

“The technological and environmental progress we have made will also enable further advances by the industry towards the creation of a thriving offshore hydrogen production market,” Lisa Christie, Country Manager for Vattenfall in the UK, said.

In July 2023, Vattenfall canceled a large UK offshore wind project due to surging costs and challenging market conditions pressuring new developments. Vattenfall will not proceed with the development of the 1.4-GW Norfolk Boreas offshore wind project as the industry has seen cost increases by up to 40%, the company said at the time. The soaring costs, coupled with increased cost of capital, put significant pressure on all new offshore wind projects, according to the Swedish firm.

At the end of 2023, Germany’s RWE said it would buy the UK Norfolk Offshore Wind Zone portfolio from Vattenfall. The portfolio includes three offshore wind development projects off the east coast of England – Norfolk Vanguard West, Norfolk Vanguard East, and Norfolk Boreas, whose development Vattenfall had canceled. RWE will resume the development of the Norfolk Boreas project, which was previously halted, the German firm said in December.  

By Charles Kennedy for Oilprice.com

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