A Norwegian power company's green hydrogen investment has produced red numbers instead of profits. Sunnhordland Kraftlag invested heavily in hydrogen technology through its subsidiary Hydrogen Solutions. The venture has accumulated nearly 50 million Norwegian kroner in losses over four years.
John Martin Mjånes, the company's CEO, acknowledged market challenges. "Development since 2021 has not been what we hoped," he said in a statement. "The market has developed too late."
Sunnhordland Kraftlag maintains 45 percent ownership in Hydrogen Solutions despite the financial setbacks. The power company has operated for nearly 80 years in western Norway's energy sector.
Traditional hydropower from tamed waterfalls and rapids provided steady income for decades. Like many Nordic energy firms, Sunnhordland Kraftlag diversified into green technology investments.
Hydrogen serves as an energy carrier rather than a direct energy source. It transports and stores energy like electricity or batteries. Many considered hydrogen crucial for the green transition in shipping and transportation.
Burning hydrogen primarily produces water vapor instead of direct carbon emissions. Yet scientists note hydrogen can indirectly contribute to warming through atmospheric chemical reactions.
Mjånes remains optimistic despite current challenges. "We still believe Hydrogen Solutions can become a success story," he stated. "We do not regret our investment."
The hydrogen market has lost momentum globally as adoption timelines stretch longer than anticipated. Many energy companies face similar challenges with green technology investments.
This situation highlights the real-world difficulties energy firms encounter when transitioning from reliable hydropower to emerging green technologies. The financial risks remain substantial even for established companies with decades of experience.