Wedoany.com Report-Nov. 5, Statkraft has announced plans for the Tagdale Green Ammonia project in Shetland, following the acquisition of an option for a site about 3.5 km northwest of Lerwick. The project will feature an up to 80 MW electrolytic hydrogen-to-green-ammonia facility adjacent to the Hill of Tagdale and has been shortlisted for funding under the UK Government’s Hydrogen Allocation Round 2.

The facility is designed to produce carbon-free ammonia for use in fertiliser and marine fuel, aiming to reintroduce domestic ammonia production in the UK while supporting industrial decarbonisation and energy transition objectives. Statkraft indicated that the development will generate approximately 20 jobs and provide upskilling opportunities for workers transitioning from the oil and gas sector. The project’s operational target is by the end of 2029.

To engage with the local community, public exhibitions will be held in Shetland on 19–20 November, with additional events scheduled next year ahead of a planning application to Shetland Islands Council.

This announcement follows Statkraft’s recent Shetland Hydrogen Project 2, located near the former Scatsta airport, and the company currently has three wind farms in pre-construction on Shetland.

Brie Foster, Statkraft’s hydrogen project manager, said: “Confirmation of Statkraft’s second Shetland green hydrogen to ammonia project shows the huge potential of the area to be a hub for innovative technologies. This project will play an important role in helping deliver food and energy security at home, as well as contribute more widely to the transition to cleaner energy. We’re in the early stage of development of our plans and will work closely with local stakeholders and the community in Shetland, as our proposals progress, and I look forward to sharing more details at public exhibitions later in the month.”

The Tagdale project is expected to strengthen local energy infrastructure while supporting the UK’s broader net-zero and clean energy targets, particularly in the industrial and transport sectors. By integrating green hydrogen with ammonia production, the facility will help reduce carbon emissions compared with traditional ammonia manufacturing methods, which rely heavily on fossil fuels.

Statkraft’s commitment to Shetland reflects a broader strategy of leveraging the region’s wind resources to develop innovative, low-carbon energy solutions. The company emphasises collaboration with local communities and stakeholders throughout the development process to ensure economic, environmental, and social benefits.

In summary, the Tagdale Green Ammonia project represents a strategic step in UK energy transition, combining renewable power, hydrogen technology, and ammonia production. It is positioned to create skilled jobs, support industrial decarbonisation, and enhance domestic energy security, while serving as a model for future low-carbon chemical production projects.