Start by roasting the hazelnuts for about 10-12 minutes in a preheated oven at 350°F (175°C) until they become fragrant and the skins start to loosen. Rub the hazelnuts in a clean kitchen towel to remove as much of the skin as possible.
Place the roasted hazelnuts in a food processor and blend until they turn into a smooth hazelnut butter consistency. This may take a few minutes, and you'll need to scrape down the sides of the processor as needed.
Once you have hazelnut butter, add the unsweetened cocoa powder, melted coconut oil, powdered erythritol (or sugar substitute of choice), vanilla extract, and a pinch of salt.
Blend everything together until the mixture is smooth and well combined.
Taste and adjust the sweetness and flavor according to your preference by adding more powdered erythritol or cocoa powder if needed.
Transfer the sugar-free Nutella to a clean jar or airtight container.
Store the sugar-free Nutella in the refrigerator. It might thicken a bit when cold, but you can let it come to room temperature or warm it slightly before using