According to the Hy3 research, collaboration between the Netherlands and Germany to build a unified hydrogen market increases the potential for achieving a decarbonized regional economy.
The Hy3 feasibility study, which was prepared as part of the Dutch-German Green Hydrogen Cooperation, focuses on the potential for offshore wind green hydrogen production in the Dutch and German North Sea regions, as well as delivery to demanding centers in the Netherlands and the neighboring western German state of North Rhine-Westphalia, starting in 2025.
A joint market for the Netherlands and North Rhine-Westphalia would more than treble the region’s potential demand for hydrogen, according to a study conducted by TNO in the Netherlands and Dena and Forschungszentrum Jülich in Germany.
Collaboration would allow for synergies such as greater infrastructure scalability and utilization, as well as increased supply security.
The substitution of present hydrogen use in the chemical and petrochemical sectors, as well as commercial transportation applications such as buses, trucks, trains, and vehicles, is predicted to boost hydrogen demand in the area. Synfuel generation and industrial decarbonization should become the primary drivers in the long run.
Demand in North Rhine-Westphalia might reach 162 TWh in 2050, and 239 TWh in the Netherlands, according to estimates — seven times more than it is now.
According to the study, coastal and offshore hydrogen production might help to maximize the North Sea wind energy potential while also supplying domestic hydrogen.
Other sources of hydrogen, other than green hydrogen produced from offshore wind in the North Sea, would be required to fulfill rising demand, with the expected shortage developing exponentially after 2025.
Hy3’s suggestions
Going forward, the report suggests that the two nations examine potentials and tools for collaboration with the goal of coordinating the development of the hydrogen economy in the cross-border region.
The respective electricity and gas grid operators should be invited to identify potentials and projects for regional cooperation, while a transnational market and hydrogen trading should be supported by exchanging market information and developing measures regarding the import and integration of hydrogen from international markets.
In the long run, a Dutch-German hydrogen market hub matching system should be established and supported, bringing demand and supply-side stakeholders together.
Cooperation prospects in R&D in the realm of hydrogen should also be encouraged and supported by a regulatory framework that encourages collaboration.
Cost considerations, operational choices for hydrogen generation from offshore wind, and the significance of hydrogen in decarbonizing the industrial value chain should all be studied further.
In connection to national and European renewable energy objectives, it is also proposed that the role of offshore hydrogen generation in a balanced mix of offshore renewable energy supply choices be investigated further.