The German energy group RWE and the Norwegian Equinor have joined the plans for large-scale hydrogen production in Groningen. The NortH2 project of Shell, Gasunie and Groningen Seaports aims to turn the province into the heart of the European hydrogen economy after the natural gas era. According to research by the University of Groningen, the project could create 5,000 to 12,000 jobs. New wind farms above the Wadden Islands must supply electricity for the production of green hydrogen in a new factory in Eemshaven. This hydrogen can be stored in Groningen salt mines and transported via the existing 'thick pipes' from the Gasunie to industrial areas in Amsterdam, Rotterdam, Zeeland and Limburg. These gas connections also cross the border towards Hamburg, the Ruhr area and Belgium.
Hydrogen is seen by energy companies as the 'future natural gas' for industrial and chemical processes that require temperatures that cannot be reached with electricity. Hydrogen is only green and sustainable if enough sustainably generated electricity is available. That is not yet the case and hydrogen is expensive to produce. Moreover, a relatively large amount of energy is lost when converting electricity to hydrogen. Still, according to more and more companies and governments in Europe, hydrogen is the future.
Although Minister Wiebes of Economic Affairs and Climate is a strong advocate of hydrogen, the cabinet is struggling with the way in which its production should be stimulated. To be ready for the future, we need to start scaling up production by building larger factories, but the current subsidy schemes are not designed for this.
No big decisions
Minister Wiebes sees opportunities for plans such as NorthH2, he announced in a letter to the Lower House last Friday. He also sees reasons to financially support the construction of hydrogen factories. The cabinet also thinks that more offshore wind farms should be built to achieve the climate goals. Nevertheless, the current cabinet, which is still in full function until March, will no longer make major decisions about the expansion of offshore wind and hydrogen.
However, everything is being investigated and prepared so that the next cabinet can make decisions after the elections. For example, new areas must quickly be designated for additional wind farms at sea. Network operator Tennet must make preparations to be able to connect these parks to the high-voltage network in time. There will also be research into the future production of hydrogen at sea.
The companies involved in NortH2 want to take hydrogen production offshore in the future. As the wind farms are built further out to sea, the costs of the DC connections will increase exponentially. It will probably be cheaper to build special factories on artificial islands or on large platforms than on the mainland. Existing gas pipelines at sea can then be used to bring the hydrogen ashore.
NortH2 is all about plans, final investment decisions have yet to be taken. The participation of RWE and Equinor does bring the realization of NortH2 closer, think those involved. RWE is already working on numerous hydrogen projects in Germany, including the construction of the largest hydrogen plant to date in Lingen, Germany. The German government is investing 9 billion euros in the expansion of hydrogen production.
Equinor, the former Norwegian Statoil, is engaged in a major sustainability effort. It will soon start construction of the world's largest wind farm on the Dogger Bank for the United Kingdom. Both Equinor and RWE are already active in Eemshaven.
Hydrogen economy
In Groningen, they hope that the next cabinet will take over the plans during the cabinet formation and that money will come from Europe and the Dutch Growth Fund. According to the companies involved, a new cabinet should further ensure a combined tender for offshore wind farms and hydrogen factories.
Numerous smaller companies in the North have also jointly presented investment plans worth 9 billion euros. Education in Groningen, both at MBO, HBO and university level, is already in the lead with courses that prepare students for the new hydrogen economy.
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