Green hydrogen in the North Sea reduces costs
A recent study by our New Energy Business School (formerly Energy Delta Institute) as one of the parties within the North Sea Energy programme demonstrates significant cost savings for green hydrogen production in the North Sea.
By producing green hydrogen on available platforms using wind energy from surrounding wind farms, savings can be made on the construction of a cable connection between the wind farm and the end user. In addition to these calculations, the costs of offshore power conversion in wind turbines and the conversion of natural gas into hydrogen were also examined.
Green hydrogen North Sea
Taking into account the aforementioned savings on the cable connection and depending on the offshore location, the production costs of green hydrogen could amount to €1 to €1,75 per kg. If part of the wind energy is converted into green hydrogen and the remaining electricity is sold onshore, the costs range from €1,75 to €2,25 per kg. These cost estimates are lower than most estimates for onshore conversion of electricity into hydrogen.
In the North Sea, you can benefit from the increasingly shorter distances between wind farms and platforms. This leads to savings on grid costs, while the hydrogen produced can be transported to shore via the existing gas infrastructure.
- Catrinus Jepma, Senior advisor New Energy Coalition
Converting electricity into hydrogen
The conversion of electricity into hydrogen is expected to become increasingly important, given the fluctuating value of a portion of the electricity supply without storage. This is currently the case when excess electricity is supplied during periods of low demand. Furthermore, the power grid sometimes cannot handle the large supply of electricity, making it necessary to convert surplus electricity into an energy form that is easy to store, transport, and use.
More about North Sea Energy
The North Sea plays a crucial role in achieving the objectives of the Paris Agreement and the transition to a safe and sustainable energy system. By combining multiple energy functions in an integrated approach, the North Sea Energy (NSE) programme aims to leverage synergies and develop new concepts for offshore system integration in the North Sea. This will contribute to accelerating an affordable European energy transition with optimal value for both society and nature.
