Shellhas scrapped plans for a low-carbonhydrogenplant onNorway's west coastdueto alackofdemand, the energy company said on Sept. 23, days after Equinorcancelled a similar plannedprojectinNorway.

Hydrogenderived from natural gas in combination with carbon capture and storage, known as bluehydrogen, has been touted as a stepping stone to decarbonizing European industry and meeting climate goals, but it is more costly than traditional methods.

"We haven't seen the market for bluehydrogenmaterialize and decided not to progress theproject," said a spokesperson forShellinNorway.

On Friday,Equinor saidit scrapped plans to produce bluehydrogeninNorwayand export it to Germany because it was too expensive and there was insufficientdemand.

Together with partners Aker Horizonsand CapeOmega,Shellhad planned to produce about 1,200 metric tons of bluehydrogena day by 2030 at the AukraHydrogenHub nearShell's Nyhamna gas processing plant.

The partnership was not renewed when it expired in June this year andShelldoes not currently have other activehydrogenprojects inNorway, the spokesperson said.

The news was first reported by Norwegian media outlet Energi og Klima.