The proposed 400MW green hydrogen project, H2Sines.Rdam, intended to revolutionize hydrogen transportation from Portugal to the Netherlands, has been quietly abandoned.
Co-developer Engie confirmed the project’s termination, citing regulatory uncertainties, market maturity, and infrastructure limitations as decisive factors.
H2Sines.Rdam was a collaborative effort between Engie, Shell, Vopak, and Anthony Veder, with ambitions to capitalize on the EU Innovation Fund’s grant support. Despite being listed as a flagship project on Engie’s website, the venture was withdrawn from further consideration before final grant agreements were reached.
Engie’s press spokesperson highlighted the absence of clear regulations and economic viability concerns as primary reasons for terminating the project. Shell echoed these sentiments, emphasizing the project’s lack of economic feasibility following a comprehensive feasibility study conducted with consortium partners.
One of the project’s significant technical challenges was the lack of suitable infrastructure and vessels capable of transporting liquid hydrogen efficiently. Although Tractebel initiated a feasibility study for a liquid hydrogen export terminal, the scarcity of ships capable of carrying large quantities of liquid hydrogen posed a formidable obstacle.
Analysts remain skeptical about the commercial viability of liquid hydrogen shipments due to high liquefaction costs, low energy density, and technical complexities. Moreover, the limited availability of vessels designed for liquid hydrogen transport raises doubts about the feasibility of large-scale commercial operations in the near future.
While efforts are underway to develop larger liquid hydrogen vessels, uncertainties persist regarding their deployment and operational efficiency. The industry must address technical challenges, regulatory frameworks, and market dynamics to unlock the full potential of green hydrogen transportation.
