Statkraft has unveiled plans for a large-scale green ammonia facility in Shetland, aimed at supplying sustainable fuels for the marine sector and other industries. The project will be based at the disused Scatsta Airport, positioning the islands as a significant player in the UK and northern Europe’s clean energy supply chain.
The development – Shetland Hydrogen Project 2 – will produce green ammonia from electrolytic hydrogen, with a planned capacity of up to 400MW. Located near Sullom Voe Oil Terminal and the Shetland Gas Plant, the site will leverage Shetland’s energy heritage while supporting economic diversification and the transition from oil and gas.
Fuel for marine, port and industrial markets
The proposed scheme will produce ammonia for a wide range of uses, with shipping fuels expected to be a primary market. Ammonia is increasingly seen as key to decarbonising global marine transport, offering ports and shipping lines a practical, scalable alternative to conventional fuels. Its North Sea location offers direct access to major shipping lanes, making the plant well placed to serve Scotland, wider UK ports and northern Europe.
The ammonia will also be used in fertiliser production, contributing to industrial decarbonisation targets across the UK and beyond. By converting surplus renewable energy from Shetland’s growing wind portfolio into a storable, tradable commodity, the project offers a practical route to integrating intermittent power into global supply chains. Lack of baseload capability has been a constant issue for UK policymakers in the drive towards a net-zero economy.
Local benefits backed by global expertise
Stuart Marley, Statkraft’s Principal Hydrogen Project Manager, called the scheme “an exciting milestone for the potential to develop green hydrogen and ammonia production in Shetland”. He added: “The historic links with energy production mean there is a wealth of talent in the region to draw on to ensure projects are run safely and efficiently.” The development could bring high-value jobs, infrastructure investment and long-term economic security to the islands, helping diversify the economy beyond oil and gas.
Statkraft has committed to working closely with local stakeholders and the Shetland community as the early development phase progresses. The company is one of Europe’s largest generators of renewable energy. It operates in more than 20 countries with 7,000 employees. The Shetland initiative is the company’s first project of this type, combining its wind assets with hydrogen and ammonia production. As one of the UK’s most northerly industrial initiatives, it could position Shetland as both a domestic supply hub and an export gateway for clean fuels to northern Europe’s ports.