Norwegian energy giant Equinor has scrapped plans to produce so-called blue hydrogen, citing high costs and insufficient demand. The move will raise concerns over Equinor’s plans in the UK, where it is heavily involved in a number of hydrogen projects.

Norway's Equinor has scrapped plans to export so-called blue hydrogen to Germany because it is too expensive and there is insufficient demand, a spokesperson for the energy company said on Friday.

Equinor (NYSE:EQNR) said it will not move forward with plans to build a pipeline to carry hydrogen from Norway to Germany with partner RWE (OTCPK:RWEOY), citing a lack of customers, supply and an adequate regulatory framework,