Shell Halts Blue Hydrogen Project in Norway Due to Non-feasibility

Group 1 - Shell's Norwegian unit has canceled its blue hydrogen project, the Aukra Hydrogen Hub, due to a lack of demand, following a similar decision by Equinor ASA [1][4] - The project aimed to produce approximately 1,200 tons of blue hydrogen per day by 2030 using natural gas from the Nyhamna processing facility, but was deemed unfeasible [2] - Blue hydrogen production, while significant for decarbonizing European industry, faces challenges such as high costs and low demand compared to traditional grey hydrogen production methods [3] Group 2 - Equinor also abandoned plans for a hydrogen pipeline to Germany, citing the same issues of low demand, high production costs, and inadequate regulatory frameworks [4] - Shell is not currently engaged in any hydrogen projects in Norway but has other active projects, including a ten-year agreement with BOTAS to supply up to four billion cubic meters of LNG annually [5] - Investors may consider other energy sector stocks such as PEDEVCO Corp. and Sasol, with PEDEVCO showing a 33.3% improvement in earnings estimates for 2024 [6][7]