Investors have scrapped plans to build a green hydrogen plant in northern Germany because of high construction costs, broadcaster NDR reports.

Set to be built in Dithmarschen, Schleswig-Holstein, the plant would have been one of Europe’s first large-scale green hydrogen schemes and a flagship of the German energy transition.

The consortium developing it included the nearby Heide oil refinery, Danish utility Orsted, and EDF subsidiary Hynamics.

They decided the plan had become too expensive and commercially risky despite subsidies offered by the German government.

The companies joined forces more than three years ago to build the H2 Westküste plant.

The German government agreed to support the project with €36m, of which €1m has already been spent on building a 30MW electrolyser.

Another hydrogen scheme in Germany, “Hyscale 100”, is still on track according to regional environment minister Tobias Goldschmidt.

This is a plan to build an electrolyser at the Heide refinery with a capacity of 500MW by 2026.

It is being developed by the same investment consortium with the addition of cement maker Holcim.

So far, €194m has been budgeted by the state government of Schleswig-Holstein for this project.