Norwegian energy giant Equinor has recently announced the abandonment of its plans to produce blue hydrogen due to high costs and insufficient demand. This decision has raised concerns about Equinor’s involvement in hydrogen projects in the UK.

The company had initially planned to generate low-carbon hydrogen from natural gas, also known as blue hydrogen, in Norway. This would have involved carbon capture and storage (CCS) technology, with the hydrogen being exported to hydrogen-ready power plants in Germany. Equinor had even proposed the construction of the world’s first offshore hydrogen pipeline as part of this ambitious project.

However, the project has now been scrapped, dealing a significant blow to proponents of hydrogen as a key element in decarbonization efforts. Equinor’s spokesman, Magnus Frantzen Eidsvold, explained that the hydrogen pipeline was not deemed viable, leading to the decision to halt the project in its early stages.

Despite this setback, Equinor will continue with other early-phase hydrogen projects in the UK and the Netherlands. One such project involves collaborating with Centrica and SS to develop multiple low carbon hydrogen projects on the north bank of the Humber. Plans for a hydrogen pipeline linking Easington to Equinor’s proposed H2H Saltend hydrogen production facility and a storage facility at Aldbrough are also in the works.

However, concerns remain about the slow development of a hydrogen economy in the UK, leading to a lack of potential customers for such projects. Equinor’s decision to abandon its blue hydrogen plans underscores the challenges facing the industry in scaling up hydrogen production and finding reliable markets for its products.

As the world transitions to a more sustainable energy future, the viability of hydrogen as a clean energy source remains a topic of debate. Equinor’s shift away from blue hydrogen highlights the complexities and uncertainties surrounding the development of a hydrogen economy, emphasizing the need for long-term commitments and market demand to drive investment in this sector.