Netherlands chooses N Sea area for 500MW electrolysis

The Netherlands has earmarked a segment of the Dutch North Sea for installation of 500MW of electrolysis capacity by 2031, saying it could constitute the largest offshore hydrogen production area in the world.

The government said it chose the area, north of Groningen, because an offshore wind farm is already planned there and it may be possible to repurpose an existing natural gas pipeline for hydrogen transport to shore. This could allow for efficient connection with the country's planned hydrogen transport system, it said.

The area was "designated as a preferred location so that preparations can start quickly" and so the sector can have clarity for its investment plans, said climate and energy minister Rob Jetten. Before launching tenders for the site the government aims to resolve outstanding questions with stakeholders, including on the pipeline's landing point and on ecological aspects of the offshore hydrogen production.

A smaller pilot with 50-100MW electrolyser capacity will be launched sooner to help iron out any technological deficiencies before the 500MW projects gets underway, the ministry said. A designated area for the smaller project has yet to be chosen.

Offshore hydrogen production from wind power is in its infancy, but certification society and consultant group DNV said last week that the North Sea has large output potential. Plans are forming in other countries, with Germany recently setting aside an area of its part of the North Sea that could host 1GW of electrolyser capacity, and UK utility Centrica and French hydrogen firm Lhyfe earlier today said they would join forces on offshore hydrogen production from wind in the UK.

The Netherlands could benefit from its extensive offshore natural gas network, although it remains to be seen how much of this can be repurposed to transport hydrogen. State-owned gas system operator Gasunie was late last year tasked by The Hague with developing an offshore hydrogen transport network.

The Netherlands set a 2030 electrolyser capacity target of 3-4GW in its national hydrogen programme from 2021. But minister Jetten previously indicated this may be revised up to as much as 8GW.

Argus calculates prevailing costs for producing hydrogen in the Netherlands from offshore wind using a directly-connected 100MW proton exchange membrane (PEM) electrolyser at $6.35/kg, including capital expenditure.

By Stefan Krumpelmann