HyCC, a joint venture between Dutch chemical company Nobian and Macquarie’s Green Investment Group, has decided to postpone the planning of its ambitious 40-MW H2eron green hydrogen project in Delfzijl, the Netherlands.
The decision underscores the challenges and adjustments companies face as they navigate the evolving landscape of the green hydrogen market.
The H2eron project, slated to be situated within the Delfzijl Chemical Park, aimed to establish an industrial-scale green hydrogen production facility. The project’s primary objectives included contributing to the production of sustainable aviation fuels (SAF), supporting mobility solutions, and facilitating the manufacturing of chemicals through the utilization of green hydrogen. Equipped with alkaline electrolysers provided by Norway’s Nel, the envisioned site had a targeted annual production capacity of 6,000 tonnes of green hydrogen. The original operational timeline was set for 2026.
HyCC cites several factors influencing the decision to delay the project. The European market’s slower-than-expected maturation, coupled with delays in the development of a robust regulatory framework, has created an environment that is not conducive to executing the H2eron project at the desired scale. Additionally, the current market conditions have contributed to rising costs, prompting a reevaluation of the project’s feasibility within the existing parameters.
Marcel Galjee, Managing Director of HyCC, emphasized that the postponement is a strategic move to ensure the project’s long-term success. The extended timeline, now targeting a potential execution in 2028 at the earliest, allows for the alignment of the project with anticipated market developments and regulatory clarity.
In response to the shifting landscape, HyCC is actively working on a plan to enhance H2eron’s capacity, potentially scaling it up to 50 MW. This adjustment is driven by the aim to optimize the cost per kilogram of the future green hydrogen output. While this decision involves canceling the current electrolyser order with Nel, HyCC is engaged in discussions with the manufacturer to realign the purchase with the updated project specifications.
HyCC’s decision to postpone and strategically adjust the H2eron project reflects the intricate balance companies must strike in the evolving green hydrogen sector. While the delay may be a tactical response to current challenges, it also positions the project to capitalize on a more mature European market expected to emerge by 2030. The scalability aspirations further underscore the commitment to long-term sustainability and competitiveness in the green hydrogen space.