Norwegian energy giant Equinor has scrapped plans to produce so-called blue hydrogen, citing high costs and insufficient demand.

Energy giant Shell has abandoned plans to construct a low-carbon hydrogen plant on Norway's western coast, citing insufficient market demand. The decision comes just days after rival energy company Equinor also cancelled a similar project in the country.

SHEL shelves its blue hydrogen project in Norway due to weak demand, highlighting challenges faced by the clean energy industries.

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.

The project aimed to produce up to 10GW of the natural gas-based commodity, and included a pipeline from Norway to Germany.

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,