Chemical Industry News, Data & Insights

Hydrogen Supply and Demand in Northern Netherlands: Progress and Challenges for RWE

Key highlights
  • RWE plans two green hydrogen plants in Eemshaven, with 50 MW and 100 MW electrolysers.
  • The projects face delays due to lack of offtakers and the proposed feed-in tariff.
  • Equinor plans a blue hydrogen plant in Eemshaven, capturing CO2 for storage.
  • GETEC Park Emmen needs 100 million cubic meters of natural gas annually, seeking hydrogen as a replacement.

Hydrogen Projects in Northern Netherlands

RWE is planning to build two significant green hydrogen plants in Eemshaven, with electrolysers of 50 MW and 100 MW capacity. The power for these plants will be sourced from wind farms, including the Westereems and the under-construction Oranjewind offshore wind farm. However, the projects are currently stalled due to the absence of committed offtakers.

Regulatory and Market Challenges

Both RWE and Engie face challenges in advancing their hydrogen projects, primarily due to uncertainties in customer demand and the proposed feed-in tariff by the Netherlands Authority for Consumers and Markets. This tariff would require power producers to pay for grid connections, a cost currently borne by customers. The introduction of this tariff has been postponed following industry backlash, but it continues to impact investment decisions.

Blue Hydrogen Developments

Equinor is developing a blue hydrogen plant in Eemshaven, which will convert natural gas into hydrogen while capturing and storing the CO2 emissions. Despite the potential benefits, the project is hindered by the lack of additional financial support for blue hydrogen, as stated in a letter from the Dutch Minister of Climate Policy and Green Growth.

Demand for Hydrogen

On the demand side, GETEC Park Emmen, which supplies energy to 30 companies, including 12 production plants, requires 100 million cubic meters of natural gas annually. The park is exploring hydrogen as a replacement to meet sustainability goals, highlighting the potential demand for hydrogen in the region.