A hydrogen project in Shetland led by Statkraft has been shortlisted to advance in the UK Government's Second Hydrogen Allocation Round (HAR2). The project aims to produce green ammonia from green hydrogen for use as sustainable fuel in marine shipping and energy decarbonisation, aligning with the UK's industrial decarbonisation goals. While details are limited due to the early stage of the project, the government's inclusion of projects in the HAR2 shortlist does not guarantee financial support. Statkraft is also involved in potential hydrogen production in Scatsta and exploring sites for hydrogen production outside Lerwick. EnQuest has plans for hydrogen production at Sullom Voe Terminal, and additional renewable energy projects are in progress in the surrounding area. Industry experts and UK government officials view the advancement of hydrogen projects as a positive step towards achieving low-carbon transition, energy security, and job creation in the manufacturing sector.