Shetland Islands Council has settled a lease with Statkraft, Europe’s largest renewable energy generator, to build a green hydrogen hub and ammonia production adjacent to the disused Scatsta Airport.
The lease will bring an annual income of £1.13 million annually. The development is expected to create multiple operational and maintenance jobs, and generate further income for the Council from the shipment of products through Sullom Voe harbour.
There will also be a fixed Community Benefit payment to the Council of £5,000 per MW installed capacity - the equivalent of around £2 million per annum at today’s value.
These funds will be managed by the Council and used to lever in further funding for strategic projects.
Council Leader Emma Macdonald: “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.”