Statkraft canceled the contract with hydrogen technology company Nel for a 40MW electrolyzer as it readjusts the development of its Hydrogen Hub Mo in Northern Norway. The project, announced in 2020 in partnership with steelmaker Celsa and Mo Industrial Park, aimed to produce green hydrogen for use in steel production and was initially scheduled to begin operations by the end of 2023.

Nel had previously identified the contract as being at high risk of delay or cancellation. In a statement, Statkraft’s Senior Vice President for Hydrogen, Bjørn Holsen, said that despite dedicated efforts, the project failed to achieve a commercially viable model under current market conditions.