DNV Estimates Green Hydrogen Potential of 300 TWh/a in Offshore Production

DNV Estimates Green Hydrogen Potential of 300 TWh/a in Offshore Production

(IN BRIEF) A study commissioned by infrastructure system operators GASCADE and Fluxys and conducted by renewable energy consultant DNV has found that green hydrogen has the potential to generate up to 300 TWh/a, making offshore hydrogen production critical to meeting Europe’s anticipated hydrogen demand. The study found that offshore hydrogen production is cheaper than onshore hydrogen production, with the potential for large pipelines to aggregate offshore hydrogen production from several wind farms. The AquaDuctus project, designed to transport hydrogen produced from wind farms in the North Sea to Germany’s onshore hydrogen grid, is part of the offshore hydrogen backbone and offers the potential to link up with other international hydrogen flows through the North Sea.

(PRESS RELEASE) BÆRUM, 17-Mar-2023 — /EuropaWire/ —  DNV, a leading provider of software solutions for the maritime industry, has released a study on offshore hydrogen production indicating that green hydrogen could generate up to 300 TWh/a, making offshore hydrogen production necessary to meet the anticipated substantial increase in European hydrogen demand. The “Specification of a European Offshore Hydrogen Backbone” study commissioned by infrastructure system operators GASCADE and Fluxys highlights the significant advantages of an offshore hydrogen backbone in the North and Baltic Seas.

“The EU expects demand for climate-neutral hydrogen to reach 2,000 terawatt hours (TWh) by 2050, and DNV sees the potential to produce 300 TWh of hydrogen using electricity from offshore wind farms in the North Sea by 2050. This would make a significant contribution to reducing dependence on energy imports. This positive aspect for increasing supply security can hardly be valued highly enough after the experiences of the recent past,” says GASCADE Managing Director Ulrich Benterbusch.

The report assesses that offshore hydrogen production is an attractive option for offshore wind production due to the lower costs of hydrogen transmission compared to electricity, as well as the potential for large pipelines to aggregate offshore hydrogen production from several wind farms. The DNV study finds that offshore hydrogen production connected by pipeline is cheaper than onshore hydrogen production.

“What we see is that areas located over 100 km from the coastline offer lower levelized costs of production.  At this distance, it costs more per energy unit to transport electricity than to carry hydrogen via pipeline”, explains Claas Hülsen, Regional Advisory Business Development Director for Energy Systems at DNV – one of the study’s authors.

The study suggests that a European backbone could connect production sites to the existing onshore pipeline network to bring the hydrogen produced offshore to land in the North Sea, while a combined pipeline would likely make sense for hydrogen transport from the Baltic Sea region to southern Europe. The spatial distribution of the potential offshore hydrogen production sites shows that different countries’ sea areas are involved, so it will be essential to strike a balance between the potential use of wind for electricity generation and hydrogen.

“This suggests that transnational coordination will be necessary to develop the full identified hydrogen generation potential”, says Christoph von dem Bussche, Managing Director of GASCADE.

The study recommends storing up to 30% of the produced hydrogen in salt caverns to optimize the hydrogen supply chain and increase the system’s flexibility. Additionally, the report provides an initial cost estimate for the offshore hydrogen backbone in the North Sea, stating that the cost of pipelines and compressors is expected to account for 10% of the total cost of hydrogen produced offshore. According to initial calculations, a hydrogen system in the North Sea can cost between €4.69-4.97/kg with an investment in offshore hydrogen transport infrastructure of €35-52 billion, including underground storage.

The AquaDuctus project, which is part of the contemplated offshore backbone, has been strengthened by the study. GASCADE and Fluxys are confident that the AquaDuctus project is a key building block to achieve a green transition and meet the decarbonization targets of the EU Green Deal and Repower EU package. This large-scale offshore pipeline project is designed to efficiently transport hydrogen produced from wind farms in the North Sea onto the German onshore hydrogen grid and is capable of collecting hydrogen from multiple production sites while also having the potential to link up with other international hydrogen flows through the North Sea.

Pascal De Buck, CEO of Fluxys, says: “The AquaDuctus offshore pipeline, thought as a regulated open access infrastructure available to all future operators of hydrogen wind farms, will make a substantial contribution to security of supply by diversifying Europe’s hydrogen supply sources.”

About GASCADE

GASCADE Gastransport GmbH independently operates a gas pipeline network throughout Germany. Based in Kassel, the company offers its customers state-of-the-art and competitive transport services for hydrogen and other gases in the heart of Europe via the company’s own high-pressure pipeline network, which is around 3,200 kilometres long. GASCADE is pursuing the goal of converting its transmission network to the transport of hydrogen and is therefore active in several specific onshore and offshore hydrogen projects.

About Fluxys

Headquartered in Belgium, Fluxys is a fully independent infrastructure group with 1,300 employees active in gas transmission & storage and liquefied natural gas terminalling. Through its associated companies across the world, Fluxys operates 12,000 kilometres of pipeline and liquefied natural gas terminals totalling a yearly regasification capacity of 380 TWh. Among Fluxys’ subsidiaries is Euronext listed Fluxys Belgium, owner and operator of the infrastructure for gas transmission & storage and liquefied natural gas terminalling in Belgium.

As a purpose-led company, Fluxys together with its stakeholders contributes to a better society by shaping a bright energy future. Building on the unique assets of its infrastructure and its commercial and technical expertise, Fluxys is committed to transporting hydrogen, biomethane or any other carbon-neutral energy carrier as well as CO₂, accommodating the capture, usage and storage of the latter.

Media contacts:

Penda Sall
Media Relations, Energy Systems
Phone: +33 651 69 88 64
contact.energysystems@dnv.com

Neil James Slater
Head of Media Relations, Energy Systems
Phone: +44 2038165702
contact.energysystems@dnv.com

Claas Hülsen
Regional Advisory Business Development Director, Energy Systems
Phone: +49 2284 4690 34
contact.energysystems@dnv.com

SOURCE: DNV AS