Shell has decided to discontinue its low-carbon hydrogen project on Norway's west coast due to a lack of market demand, Reuters has reported.  

The British energy giant had envisioned the Aukra Hydrogen Hub as a means to produce approximately 1,200t of blue hydrogen per day by 2030.

This development follows a similar cancellation by Equinor of a blue hydrogen project in Norway.

Blue hydrogen, produced from natural gas with carbon capture and storage, is considered a transitional solution for decarbonising European industry. However, the costs are higher compared with traditional hydrogen production methods.

"We haven't seen the market for blue hydrogen materialise and decided not to progress the project," stated the Shell spokesperson in Norway.

The decision not to renew the partnership with Aker Horizons and CapeOmega came after the initial agreement lapsed in June of this year.

Currently, Shell does not have any active hydrogen projects in Norway. This news was initially brought to light by Norwegian media outlet Energi og Klima.

In related news, Shell is also taking precautionary actions in the Gulf of Mexico due to a tropical disturbance. The company is shutting down production at its Stones and Appomattox facilities and has begun evacuating non-essential personnel from its Mars Corridor assets.

"We are in the process of safely pausing some of our drilling operations, and currently have no other impact on our production across the Gulf of Mexico," Reuters quoted Shell as saying in a statement.

Recently, Shell, through Shell International Trading Middle East, entered into a ten-year liquefied natural gas (LNG) agreement with BOTAS, the Turkish state-owned oil and gas company.

Under the agreement, Shell will supply up to four billion cubic metres of LNG annually to BOTAS.

This long-term contract, set to commence in 2027, will source LNG from Shell’s US and global portfolio, bolstering Türkiye’s energy diversification efforts.