Shetland Hydrogen Project 2

About Shetland Hydrogen Project 2

Shetland Hydrogen Project 2 (SHP2) is a proposed electrolytic hydrogen to green ammonia production facility with a capacity of up to 400MW, on land adjacent to Scatsta Airport to the north of Shetland Mainland. The project is close to existing energy hubs at Sullom Voe Oil Terminal and Shetland Gas Plant.

The green ammonia produced will be used by a wide range of industries, including as a sustainable fuel for marine shipping and to decarbonise fertiliser production, and in doing so contribute significantly to the UK’s industrial decarbonisation goals.

Projects such as SHP2 can allow excess renewable power that cannot be utilised by the grid to be transformed into hydrogen or ammonia, which can be stored or more easily transported.

Statkraft was awarded a share of £3.4 million funding from Scottish Enterprise, along with other developers, which is aimed at helping develop green hydrogen schemes.

What is happening?

Project updates

Get the latest updates on the development of proposals for Shetland Hydrogen Project 2, and feel free to contact us.

Go to the project updates

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Local Suppliers

Our aim is to have the least impact and provide the most benefit to the communities in which we operate. The construction phase is one way we can create economic benefits through inward investment, a...

Stage 1: Site Selection

Extensive research to identify suitable sites. Pre-feasibility studies (environmental and technical) to confirm site viability for development.

Lease agreement negotiated between Shetland Island Council and Statkraft.
Stage 2: Pre-Planning

More detailed studies are undertaken to further mature the project’s development. These are inclusive of further environmental assessments and a pre-FEED (Front End Engineering and Design) study.

During this phase, a public consultation is planned to take place in XXX.
Stage 3: Planning Application Submitted

Submission of necessary planning permissions to the Scottish Government and Shetland Islands Council.
Stage 4: Completion of FEED (Front End Engineering and Design)
Stage 5: Construction
Stage 6: Operation

Shetland Hydrogen Project 2 is expected to enter commercial operation and production in 2032.