Statkraft outlines renewable ammonia plans for Shetland

Two projects: Scatsta Airport and Tagdale

Click to learn more. Statkraft has outlined more details for two renewable ammonia projects in the Shetland Islands, Scotland.

Statkraft is working with the local community to progress plans for two electrolysis-based ammonia projects in the Shetland Islands, Scotland. Outside of the capital Lerwick, an 80 MW project will produce ammonia for fertiliser and marine fuel. Tagdale Green Ammonia is expected to be operational by the end of 2029, and will be located adjacent to industrial sites and ship facilities on the Dales Voe: a deepwater port that currently serves multiple offshore industries. The Tagdale project was shortlisted for funding by the UK’s Department for Energy Security and Net Zero in April 2025.

Statkraft has also shared details of its second project in Shetland this year. The electrolysis-based ammonia facility (400 MW) will be located on disused industrial land adjacent to the disused Scatsta airport, further north from the capital Kerwick. Statkraft has committed around £3 million per year combined for rent and a “fixed community benefit payment”. To power the two projects, Statkraft has three grid-connected wind farms in the pre-construction phase, Mossy Hill near Lerwick, and Energy Isles and Beaw Field on Yell.

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.

Brie Foster, Statkraft’s Hydrogen Project Manager, in her organisation’s official press release, 5 Nov 2025

This project aligns closely with the principles we recently approved in ‘A Fair Share for Shetland’, which aims to ensure our islands and our community benefit as much as possible from the development of renewable energy projects in our area. There are a number of renewable projects either underway or in planning for Shetland, and it is critically important that we as a council do what we can to ensure the isles see a benefit if the projects proceed.

Shetland Council leader Emma Macdonald, quoted in “Scatsta hydrogen lease and community benefit details revealed”, Shetland News, 6 Aug 2025