- The H2M Eemshaven project aimed to produce 210,000 tonnes of low-carbon hydrogen annually.
- Geographic isolation and lack of pipeline infrastructure led to high transportation costs.
- The project failed to secure binding offtake agreements in late 2024.
- Equinor is shifting focus to markets like Belgium and Germany with better industrial clusters.
Project Overview
The H2M Eemshaven project, located in the Netherlands, was designed to produce 210,000 tonnes of low-carbon hydrogen annually. Despite support from industry leaders and advanced carbon capture technology, the project was canceled due to geographic challenges.
Geographic Challenges
Eemshaven, while a hub for datacenters and power generation, lacks the heavy industrial base needed to consume hydrogen at scale. Unlike Rotterdam or Antwerp, it is not connected to the European Hydrogen Backbone, leading to high transportation costs and logistical issues.
Market and Infrastructure Issues
The absence of local buyers, as datacenters and renewable plants do not use hydrogen, left Equinor without necessary offtake agreements. An industry call for these agreements in late 2024 failed, preventing a Final Investment Decision.
Strategic Shift
Equinor is now focusing on markets like Belgium and Germany, where industrial clusters and policy support offer a clearer path to profitability. The project's failure underscores the importance of infrastructure and proximity to demand in the hydrogen economy.
Lessons Learned
The collapse of H2M Eemshaven highlights three key lessons: the need for infrastructure co-located with demand, the importance of policy clarity to de-risk investments, and the prioritization of brownfield sites in established industrial zones over isolated greenfield locations.
