Northern Netherlands Hydrogen Investment Plan 2020 Expanding the Northern Netherlands Hydrogen Valley Table of Contents

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THE NORTHERN NETHERLANDS HYDROGEN INVESTMENT PLAN 2020 EXPANDING THE NORTHERN NETHERLANDS HYDROGEN VALLEY TABLE OF CONTENTS

Preface 3

Executive Summary 4

01 An attractive opportunity for the Netherlands 6

02 Northern Netherlands uniquely positioned 14

03 A blueprint for the rest of Europe 20

04 A road map to 2030 24

05 Support needed – 9 actions 28

06 Implementation plan next 18 months 32

Appendix 36

List of Northern Netherlands hydrogen projects 38

The Northern Netherlands road map 40

The Northern Netherlands implementation plan 41

List of Sources 42

TABLE OF CONTENTS 2 PREFACE

Over the past several years, the Northern Northern Netherlands, one goal of the region in the European gas industry, the Netherlands Netherlands has accelerated their hydrogen is to have hydrogen production offshore by is favourably positioned to build on its posi- project pipeline together with their ambitions 2030. Whereas the project pipeline in the 2019 tion and heritage of natural gas excellence of becoming the leading European hydrogen Investment Agenda was worth 2.8 billion € in to accelerate hydrogen developments and ecosystem. The Northern Netherlands has total, all investments in this Investment Plan lead this emerging industry. A leading Dutch received recognition from the FCH JU Hy- amount to over 9 billion €. hydrogen industry has the potential to attract drogen Valley grant as the leading European global businesses, investments, and talent hydrogen valley developing a fully-fledged In the buildup of a hydrogen ecosystem like – it would provide the Netherlands with the green hydrogen value chain, and is highlight- this, the region faces not just technical and opportunity of securing 66,000 existing recur- ed as target region for the European Just economic challenges, but needs to address ring FTEs (e.g., gas infrastructure, mobility), Transition Fund. Furthermore, global busi- societal acceptance as well. The Northern attracting 41,000 new recurring FTEs (e.g., nesses (e.g., Engie, Equinor, RWE, Shell and Netherlands Hydrogen Investment Plan sup- maintenance, operations), and up to 104,000 Vattenfall) have increasingly committed to ports this next phase with the provision of a new one-off FTEs by 2050.The benefits will be the Northern Netherlands as their hydrogen concrete road map, set of requirements, and shared by all of the Netherlands and North- ecosystem of choice, and regional govern- implementation plan to realise the Dutch hy- western Europe. This is not something the ments have increased their commitments to drogen potential. Northern Netherlands could (or should) pull realise the Northern Netherlands hydrogen off by itself. the efforts can only lead to re- ecosystem. Close collaboration with the sur- Hydrogen is an attractive emerging industry: sults if coupled with those of other regions, of rounding countries will add to its develop- green and blue hydrogen are needed to meet Germany, Belgium and the European Union. ment. This increased momentum has brought Dutch and global climate targets as feedstock In that regard, we look upon the tremendous about the next phase in the realization of the and fuel, especially in hard-to-abate sectors attention to and push for green hydrogen by Dutch hydrogen opportunity, moving from (e.g., industry, heavy-duty transport), while many of the relevant actors with whom the pilots and demos to maturing and scaling up bringing about improved air quality and the Northern Netherlands gladly continue to co- the Northern Netherlands hydrogen ecosys- abatement of other pollutants like nitrogen operate. tem. To highlight the ambitious nature of the oxides and particulate matter. As the leader

“The Northern Netherlands are on their way “The plans in Northern Netherlands are to make the Hydrogen Valley a reality. The unique and promote “a massive increase” activities in the region will bring the cost of of electrolyser production. In this way, the renewable hydrogen down. This will pave Investment Agenda highly contributes to the the way for large scale deployment in the EU European 2x40GW green hydrogen initiative and thus contribute to achieve the climate and should be the starting point of the targets. It is really a showcase of cooperation creation of a European Hydrogen Investment between parties from various sectors in the Agenda.” Northern Netherlands and a role model for a future Hydrogen Economy.” — Jorgo Chatzimarkakis, Hydrogen Europe — Bart Biebuyck, FCH JU

“The Northern Netherlands has a unique “ENGIE is fully committed to green “RWE supports the ambitions of the starting position for developing a hydrogen hydrogen and supports the Northern Northern Netherlands, which we con- economy, but it needs to expand its assets Netherlands as a core European region sider a sweet spot for kickstarting the fast, in part by realising import and large- for developing the hydrogen value chain European green hydrogen market” scale export facilities. If you ask me, the North including large-scale electrolysis.” is actually quite modest with this plan.” — Roger Miesen, — Michele Azalbert, RWE — Ad van Wijk, Engie professor future energy systems

3 PREFACE EXECUTIVE SUMMARY

The Northern Netherlands in particular has a unique opportunity to cost-effectively develop an integrated hydrogen ecosystem, to become a game-changer in the global hydrogen developments, and to accelerate the Dutch hydrogen momentum. In addition to the strong regional triple helix, the Northern Netherlands has unique access to the critical assets required for a cost- competitive hydrogen ecosystem. It has:

i. Access to European hydrogen offtake ed investments (excluding offshore wind and markets, with over 400 PJ per annum grid expansions, which require large invest- of addressable Northwestern European ments by themselves and are essential for the (Benelux, Western Germany, Northern hydrogen ecosystem to be developed). France) demand (30 GW hydrogen equivalent) being expected by 2030 when con- The Northern Netherlands has been recog- sidering a 1.5 degree scenario of the 2016 nised as the leading hydrogen valley in Eu- Paris Agreement. rope. Building on this current momentum, recognition, and ambition level, it aspires to ii. Large offshore wind potential north of remain the leading European hydrogen eco- Northern Netherlands, with available space system beyond 2030, covering the entire hy- for over 20 GW of which 4 to 6 GW of hydrogen value chain, including offshore wind (at drogen-dedicated wind is required by 2030. least 4 to 6 GW), hydrogen production (over 65 PJ/a clean production), transport (1,150 km iii. Strategic locations for hydrogen produc- of connected Northwestern European hydro- tion at industrial hubs (Delfzijl, Eemshaven, gen pipelines), storage (150 PJ potential), and Emmen) to develop 100 PJ per annum of demand in Northwestern Europe (400 PJ per hydrogen production capacity by 2030. annum from Benelux, Western Germany, and Northern France). By 2030, the Northern Neth- iv. Available and dense gas infrastructure, erlands will produce approximately 100 PJ of with high-quality parallel gas pipelines, salt hydrogen per annum to supply over 25 per- caverns for hydrogen storage, and strate- cent of the hydrogen demand of Northwest- gically located ports. ern Europe. Beyond 2030, when the European hydrogen ecosystem is fully developed, the v. Gas and hydrogen knowledge, on gas tra- Northern Netherlands will be the global centre ding, transport and innovation, that builds of hydrogen infrastructure and expertise, re- on the Dutch position as the European newing its role as a leading “gas roundabout” leader in natural gas excellence and on- and market hub for green fuels, manufacturing going hydrogen projects. excellence, knowledge, and innovation.

The Northern Netherlands also has a systemic To realise the Northern Netherlands ambition approach in place to create integrated self-sus- in a systemic way, a road map has been imple- taining value chains for end uses that can form mented following two phases: the blueprint for the rest of Europe. Further- more, the existing project pipeline provides Phase 1: Mature and scale (2020 to 2025). the momentum needed to mature and scale Moving to 2025, the Northern Netherlands up the Northern Netherlands hydrogen eco- will mature and scale up between 5 to 10 PJ system in the coming decade, underpinned by of hydrogen capacity per annum with various more than 50 projects in the value chain (pro- projects in place across the value chain, from duction, transport, storage) and end uses (in- production (Eemshydrogen, DJEWELS 1 and dustry, transport, power, buildings), with over 2, HyNetherlands phase 1, GZI Next Em- EUR 9 billion in planned direct hydrogen-relat- men) and infrastructure (hydrogen backbone

4 Northern Netherlands and HyStock storage) and (D) overall program management (actions 8. Assigning the majority of the allocated to end-use cases (BioMCN, Holthausen, Mag- 8 to 10), with as nine actions (all relevant): Just Transition Fund budget to the num Power Station, SkyNRG, Hydrogen Hoo- Northern Netherlands. geveen, HEAVENN). To realise these projects, 1. Ensuring a supporting regulatory frame- there will be over EUR 850 million in invest- work during the mature and scale phase 9. Steering hydrogen ecosystem developments. Apart from these private investments, until 2025 by exempting the additionality ments in collaboration with the Northern additional regulatory and financial commit- and correlation requirements of the Renew- Netherlands Transformation and Coordina- ments are needed to ensure timely execution. able Energy Directive II (RED II). Power pur- tion office, focused on strategy, projects, chase agreements in combination with the and collaborations. Phase 2: Northwestern European expan- Guarantees of Origin will enable hydrogen sion (2025 to 2030). From 2025 onwards, the from renewable sources to be labelled and 10. Orchestrating a systemic national ap- Northern Netherlands hydrogen ecosystem priced as such, creating a larger market. Af- proach to the end-to-end developments will grow to 100 PJ per annum of Northern ter 2025 additional offshore wind for hydro- of the hydrogen ecosystem and ensuring Netherlands hydrogen capacity by 2030, of gen will ensure additionality requirements developments are in line with the scale-up which 75 percent will be green hydrogen (6 are met. of the larger ecosystem. GW equivalent) and 25 percent will be blue hydrogen production. The region will expand 2. Introducing hydrogen scale-up funds and The build-out of the Northern Netherlands its reach to serving the Northwestern European support instrumentation (e.g., expression hydrogen ecosystem till 2030 – based on hydrogen markets with 400 PJ per annum of of interest schemes) with sufficient size to the current project pipeline – builds on addressable hydrogen demand by 2030. Large bridge investment gaps of critical hydrogen EUR 9 billion of planned investments, of projects will drive integrated hydrogen ecosys- ecosystem assets. which most are private investments, and tems (NortH2, HyNetherlands phase 2 and 3, is expected to attract over 25,000 hydro- H2M) while domestic and cross-border connec- 3. Compensating the initial investment gen-related jobs. Hydrogen will increasingly tions will connect the Northern Netherlands to gap for critical infrastructure to ensure realise CO2 emission reduction targets, with Northwestern European offtake markets (Ben- future-proof infrastructure investments 5.5 to 11 Mt of annual GHG emissions re- elux, Germany, France). To realise these pro- are made that facilitate the rollout of the duced by 2030 - this is 2.5 to 5.0 percent of jects, over EUR 9 billion will be invested, and hydrogen ecosystem. A decision on the 1990 Dutch emission levels. short-term governmental actions are needed infrastructure for transport and storage is to mandate hydrogen usage, expand offshore needed in 2021. To realise the hydrogen opportunity in the wind capacity, and synchronize cross-border Northern Netherlands, the regional triple investments and regulatory frameworks, in a 4. Incentivizing hydrogen demand uptake helix of government, industry, and knowledge complex environment of globally interconnect- via supporting regulatory frameworks institutions have developed an 18-month ed businesses and public bodies. (e.g., volume mandates or targets, carbon implementation plan. The Northern Nether- contracts for difference, feed-in tariffs, pre- lands will set-up a transformation and coor- While private and public stakeholders are miums, expression of interest tenders or dination office to orchestrate the scale-up committed to realizing the Northern Neth- trading schemes) and a hydrogen trading of the hydrogen ecosystem. Regional work erlands hydrogen ecosystem, additional market and by boosting demand with sup- groups will detail the requirements to realise offshore wind, supporting regulatory frame- port policies for specific end-use sectors and expedite the project pipeline (demand, works, and short-term funding are needed (such as measures and policy initiatives to infrastructure, production, offshore wind), to bridge investment gaps. Pre-2025 projects stimulate the use of hydrogen or its deriva- especially considering a number of critical require short-term regulatory incentives and tives in the transport sector). financial investment decisions to be made additional funding to meet short-term finan- in the years to come. The larger hydrogen cial investment decisions. The larger projects 5. Accelerating offshore wind develop- ecosystem and job potential will be assessed towards 2030, most with financial investment ments by advancing the allocation and to ensure an effective transition towards the decisions before 2025, require the imple- spatial planning of at least 4 to 6 GW of hydrogen ecosystem. As part of the implementation of clear regulatory frameworks in offshore wind capacity above the Northern mentation plan, the Dutch and European the next two to three years to ensure a timely Netherlands dedicated to hydrogen pro- governments play a vital role in orchestrat- rollout of hydrogen-related assets. Overall, duction. A decision on the expansion of the ing nation- and European-wide hydrogen four key areas of required mechanisms were Dutch offshore wind target for hydrogen is developments. Dutch governmental support identified, with nine specific actions that need needed in 2021. is needed to support setting up the neces- to be addressed by the Dutch government in sary short-term regulatory mechanisms, ac- addition to the actions of the Northern Neth- 6. Investing in the larger hydrogen ecosys- celerating the offshore wind spatial planning erlands. They focus on the power, the means tem needs via educational programs and process, and ensuring national programs are and the people that are necessary for this tran- supporting innovation centres in the region. in place to effectively transfer labour across sition. The key areas are (A) hydrogen produc- industries. European support is needed to tion, infrastructure and demand (actions 1 to 7. Transitioning intangible assets (talent, ensure pragmatic and swift handling of hydro- 4), (B) offshore wind capacity (action 5), (C) the knowledge, innovation) from other industries, gen funding initiatives to ensure timely reali- larger hydrogen ecosystem (actions 6 to 7), such as natural-gas-related intangible assets. zation of financial investment decisions.

5 EXECUTIVE SUMMARY 01 AN ATTRACTIVE OPPORTUNITY FOR THE NETHERLANDS

6 Hydrogen presents an attractive opportunity for the Netherlands to lead an emerging industry. The European decarbonisation strategy increasingly stresses the relevance of hydrogen and the need to accelerate innovation. The Netherlands can build on its position as a leader in the European gas industry and its heritage of natural gas excellence to accelerate hydrogen developments and lead this emerging industry, positioning the country as the centre of the European hydrogen backbone. To capture this opportunity, it is critical that the Netherlands acts now.

ties, and zero-carbon dispatchable capacity The Dutch hydrogen for peaking demands. In addition, the Dutch opportunity economy will be able to gain a competitive In 2019, the Dutch government committed to edge by transitioning early as well as benefit the Climate Agreement with an ambitious cli- from improved air quality and the abatement mate target: to reduce greenhouse gas emis- of other pollutants like nitrogen oxides and sions by 49 to 55 percent by 2030, compared particulate matter. to 1990 levels. The Agreement states that a combination of renewable power and car- In addition, hydrogen provides an opportuni- bon-neutral energy carriers, such as hydrogen ty for the Netherlands to transition away from and biomass, are necessary to meet this target. the natural gas economy while benefitting This Agreement is widely supported by socie- from existing knowledge and infrastructure. ty and holds over 50 signatures from leading Triggered by the Groningen earthquakes, the organizations in the Netherlands. It has been Netherlands pledged to transition away from followed up by the Kabinetsvisie Waterstof, the its role as the leading European natural gas vision document on hydrogen by the Dutch economy – with the consequence of possibly government, highlighting in more detail that losing 20,000 jobs by 2022. However, given hydrogen can fulfil a large role in decarbonis- the comparable characteristics of hydrogen ing the hard-to-abate economic sectors. and natural gas, the Netherlands saw hydrogen as a natural industry extension, allowing In the Dutch energy transition, green and them to build on existing gas knowledge, in- blue hydrogen plays a pivotal role to meet frastructure, and trading experience, while tar- the climate targets. Hydrogen enables the geting the economic benefits of the projected decarbonisation of hard-to-abate sectors growth in hydrogen demand. (e.g., industry feedstock, high-grade industrial heating, heavy-duty or long-range transport, A European call to action including shipping; applications where elec- IIn recognition of the growing global consen- tricity or batteries do not suffice) and enables sus of the pivotal role hydrogen plays in sup- the power sector to operate a fully decarbon- porting decarbonisation, the EU and individual ised, reliable, and secure power system, pro- member states have implemented numerous viding flexibility to integrate solar and wind at decarbonisation strategies. One such exam- scale, long-duration energy storage capabili- ple is the EU’s recently published “Hydrogen

7 AN ATTRACTIVE OPPORTUNITY FOR THE NETHERLANDS strategy for a climate-neutral Europe,” which ditional 55 percent cost reductions of green 2,400 PJ by 2030 and the equivalent of 8,100 intends to help implement the ambitious Eu- hydrogen production expected towards 2030. PJ by 2050, addressing 6 percent of final en- ropean Green Deal and build on the Europe- For the Netherlands, scaling up clean hydrogen ergy consumption in 2030 and 24 percent in an Commission’s New Industrial Strategy for production is also a cost-effective decarbonisa- 2050. Europe and recovery plan. The Strategy sets tion solution as it becomes cost-competitive out a vision for how to turn clean hydrogen with grey hydrogen towards 2030 – 2035, re- The EU further emphasises the importance of into a viable solution for decarbonizing differ- mains cost-competitive with shipping import of acting now, given that investments made over ent sectors over time, installing at least 6 GW green hydrogen, and secures hydrogen supply the next decade will only impact emissions in of renewable hydrogen electrolysers by 2024 in the region. The potential for more cost-com- 2050 (investment cycles are often 25 years), and 40 GW of renewable hydrogen electrolys- petitive green hydrogen supply from Southern and these therefore need to support the ze- ers by 2030. In line with this, the Dutch target Europe via integrated European hydrogen ro-emission targets. for green hydrogen is to develop 3 to 4 GW pipelines or tankers is not to be expected be- of renewable hydrogen electrolysers by 2030 fore 2035, with security of supply remaining to A unique opportunity for (around 10 percent of the EU’s target). This fits be a rationale for long-term green hydrogen the Netherlands well into the European industry vision to secure production in the Netherlands. In addition, the 2x40 GW green hydrogen production capacity expected cost reduction of green hydrogen In the development of a Dutch and European by 2030, half of which locally in Europe and half production will result in select applications hydrogen ecosystem, the Netherlands has the by importing from other regions. achieving commercial viability before 2030 at unique opportunity of building on its existing forecast carbon prices (e.g., EUR 60 to 100 per knowledge and infrastructure, developing a

The European commitment to hydrogen ton of CO2 equivalent for steel). This combi- cost-effective decarbonisation solution, and comes with an economic rationale, driven by nation of cost reductions and clear regulatory attracting socioeconomic benefits. 35 percent cost reduction in green hydrogen commitments would result in the hydrogen de- production over the past five years, and ad- mand in Europe increasing to the equivalent of Existing knowledge and infrastructure. The Netherlands has access to the assets needed to develop a robust hydrogen ecosystem: potential for at-scale offshore wind, hydrogen infrastructure (dense high-quality gas infrastructure, hydrogen storage in salt caverns, port availability), talent and knowledge in- Exhibit 1. stitutions, chemicals trading, and hydrogen offtake markets. Planned projects in the North Scaling up local green hydrogen becomes cost-competitive Sea will provide 11 GW of offshore wind with grey hydrogen by 2030-35, and remains cost- capacity by 2030, after which a further scale- competitive with shipping import of green hydrogen up of between 20 to 40 GW will be realised. while securing energy supply The country’s natural gas heritage provides the EUR per kg Netherlands with a dense, at-scale pipeline infrastructure which can cost-effectively be retrofitted to transport hydrogen. The combination of the pipeline quality and parallel infrastructure supports the cost-effective transition to Uncertainty (+110% compared hydrogen, while the availability of natural salt 3.2 to 2020) caverns enables at-scale hydrogen storage, amounting to the equivalent of over 150 PJ in (-26% to -23% 2.2 compared to 2030) storage capacity (around 5 percent of 2018’s Dutch energy demand). Given the country’s (-70% compared natural gas heritage and global thought lead- 1.8 to 2020) ership, the Netherlands also has the exper-

2020 2025 2030 2035 2040

Grey hydrogen Shipping import green hydrogen – Middle East

Green hydrogen Shipping import green hydrogen – Spain

Source: Hydrogen council: Path to hydrogen competitiveness, 2020. Additional assumptions from: Northern Netherlands Hydrogen Coalition and Planbureau voor de Leefomgeving: limaat- en Energieverkenning, 2019

8 Exhibit 2. The addressable regional demand, with a Northwestern European hydrogen infrastructure in place, increases to 400 PJ in 2030 in a 1.5 degree scenario (Paris Agreement, 2016) PJ p.a.

590 600 Northern France

500 Western Germany 400 Benelux 400 344

300

200

100

0 2020 2030 2040

Source: Northern Netherlands Hydrogen Coalition

Exhibit 3. The hydrogen demand use cases will shift from industry feedstock today, to more transportation, industrial energy, and other use cases towards 2030 and beyond Percent

100 Power Buildings, heating Buildings and power Transportation 80 Other transportation Industrial energy Trucks Industrial feedstock 60

Iron and steel 40 Chemicals Reﬁning 20 Ammonia

0 2020 2030 2040

Source: Northern Netherlands Hydrogen Coalition

9 AN ATTRACTIVE OPPORTUNITY FOR THE NETHERLANDS Exhibit 4. The Northern Netherlands hydrogen ecosystem is unique, compared to other global Industry Transportation Innovation hydrogen hubs, in developing an integrated hydrogen value chain Present in region center

Manufacturing Production Transport End users Northern Netherlands Geirangerfjord Europe Europe Copenhagen Europe Seoul Scotland APAC Europe

Yokohama APAC California Rest of World

Neom Rest of World

Aragon Europe

Bolzano Europe Hamburg Europe Western Australia APAC Auvergne-Rhône-Alpes Europe

Source: Northern Netherlands Hydrogen Coalition

10 The Northern Netherlands hydrogen ecosystem is unique, compared to other global Industry Transportation Innovation hydrogen hubs, in developing an integrated hydrogen value chain Present in region center

Manufacturing Production Transport End users Northern Netherlands Geirangerfjord Europe Europe Copenhagen Europe Seoul Scotland APAC Europe

Yokohama APAC California Rest of World

Neom Rest of World

Aragon Europe

Bolzano Europe Hamburg Europe Western Australia APAC Auvergne-Rhône-Alpes Europe

Source: Northern Netherlands Hydrogen Coalition

11 AN ATTRACTIVE OPPORTUNITY FOR THE NETHERLANDS Exhibit 5. The Northern Netherlands has a central role in developing the European hydrogen backbone, by connecting Northwestern Europe pre-2030 and the entire Western Europe towards 2040

Phase 1 Emerging regional clusters (pre-2030)

Source: Gasunie: European Hydrogen Backbone, 2020

tise and knowledge institutions necessary to sition to hydrogen also creates a competitive the Netherlands, of which 90 percent are re- accelerate hydrogen innovation. In addition, advantage for the Netherlands in achieving curring and 10 percent one-off jobs, in large the Netherlands has an outstanding trading its decarbonisation targets, as hydrogen is companies as well as SME’s. These jobs do position, with leading positions in the Europe- more competitive than other carbon-neutral not just comprise the industries active in hy- an Transport Scoreboard and World Economic alternatives in some hard-to-abate industries drogen production, transport or end-use. A Forum Port Infrastructure Ranking. Finally, the (e.g., steel) and even the only carbon option manufacturing industry could be created as Netherlands is strategically positioned with (e.g., feedstock for fertilisers) at times. well, specializing in various types of high-tech large domestic (e.g., Delfzijl, Chemelot, equipment. Rotterdam) and nearby cross-border (e.g., Socioeconomic benefits.Another early-mov- North Rhein-Westphalia) hydrogen offtake er advantage of developing a leading Euro- To capture this unique opportunity of a Dutch markets. Taking these factors into conside- pean hydrogen ecosystem is the securing and hydrogen ecosystem, including the early- ration, it can be concluded that hydrogen is a attracting of businesses and job opportunities. mover advantage, the Netherlands needs “strategic fit” for the Netherlands. A Dutch hydrogen ecosystem can secure up to to act now. Initial Dutch Climate Agreement 66,000 existing FTEs (e.g., gas infrastructure, targets show a willingness to act, with the Cost-effective decarbonisation. The Nether- mobility) and attract up to 41,000 new FTEs objective of installing at least 500 MW of lands would benefit from developing a leading (e.g., vehicle maintenance, electrolyser oper- green hydrogen production capacity by 2025 European hydrogen ecosystem by accele- ations) for recurring jobs by 2050. In addition, and 3 to 4 GW by 2030. Beyond targets, the rating more cost-effective decarbonisation of the build-out of the hydrogen ecosystem can private and public sectors must work toge- the energy system, ensuring a decarbonised create up to 104,000 FTEs of one-off jobs ther to execute on a broad set of initiatives to energy system that is reliable and secure, and between 2020 and 2050 (e.g., engineering, realise the Dutch hydrogen opportunity. attracting new businesses and job opportuni- construction). By 2030, the estimated hydro- ties from an emerging industry. An early tran- gen-related job potential is 25,000 FTEs in

12 Phase 2 Established North-South Corridor (2030-2035)

Phase 3 Core European Hydrogen Backbone (2035-2040)

13 AN ATTRACTIVE OPPORTUNITY FOR THE NETHERLANDS 02 NORTHERN NETHERLANDS UNIQUELY POSITIONED

14 Focusing on a prioritised set of regions in the Netherlands will help accelerate the Dutch hydrogen momentum by increasing spend effectiveness, ensuring collaborative ecosystems, focusing businesses, and orchestrating investments. Given the access to critical assets, the integrated value-chain approach, and the committed project pipeline, the Northern Netherlands is uniquely positioned to accelerate the Dutch and European hydrogen ecosystem.

Access to critical assets Given the proximity of the Northern Nether- The Northern Netherlands has access to the lands to the projected hydrogen offtake mar- following critical assets required for a compe- kets in Northwestern Europe, green hydrogen titive hydrogen ecosystem: hydrogen offtake can already be supplied via hydrogen trucks markets, offshore wind potential, strategic while the pipeline infrastructure is being de- locations for hydrogen production, available veloped. Once the hydrogen pipeline sys- and dense infrastructure (pipelines, storage, tem is fully operational, the transport costs of ports), and gas and hydrogen knowledge. green hydrogen will further decline and unlock the full demand potential. In this regard, Hydrogen offtake markets. The Northern collaboration with the nearby industrial clus- Netherlands is surrounded by developing ters like the port of Rotterdam is crucial and hydrogen demand hubs (e.g., Chemelot, the Northern Netherlands embraces contacts North Rhine-Westphalia). Additionally, the with Amsterdam, Rotterdam, Zeeland and demand for hydrogen in the Benelux states Limburg, and continues to build up the rela- is projected to reach 240 PJ per annum tionship with Germany. by 2030 (2.0 Mt equivalent) with centres in the Northern Netherlands, Rotterdam, and Offshore wind potential. The North Sea Antwerp. The Northern Netherlands hydrogen (up to Dogger Bank) north of the Northern infrastructure backbone holds the potential to Netherlands is a great resource for offshore supply Northwestern Europe by 2030, and a wind at shallow near-shore locations with larger area of Europe towards 2040. By 2030, significant potential (22 GW). Solar, onshore the cumulative addressable demand from wind, and imports from surplus renewable the Northern Netherlands will reach 400 PJ power from Denmark (Cobra, as a project per annum (3.3 Mt equivalent) when consi- of common interest), Norway (NorNed), and dering a 1.5 degree scenario of the 2016 Paris Germany offer additional renewable capa- Agreement, with 60 percent coming from the city for hydrogen production. Domestic green Benelux, 30 percent from Western Germany, hydrogen production is expected to remain and 10 percent from Northern France. cost competitive to imports to at least 2035,

15 NORTHERN NETHERLANDS UNIQUELY POSITIONED and additionally ensures security of supply Northwestern European interconnections will hydrogen expertise (e.g., New Energy Coali- beyond 2035. Renewable energy developers be developed to realise the European hydro- tion, recognition as Hydrogen Valley). Region- are also expected to strongly promote the gen backbone by 2027. al knowledge institutions are also ramping up acceleration of green hydrogen production, innovation centres (e.g., DNV GL, Entrance, as – coupled with offshore wind – it reduces The Northern Netherlands also has access TNO) to spearhead next-generation hydro- merchant-price risk. In addition to offshore to natural hydrogen storage locations in salt gen initiatives and scale up industrial-size hy- wind providing an opportunity for hydrogen caverns to help balance the grid and increase drogen production capacity (e.g., Magnum). production, hydrogen production and storage grid resilience. The total Dutch hydrogen stor- Hence, the Northern Netherlands provides a also supports the build-out of offshore wind by age potential is 150 PJ of hydrogen capacity unique environment in which to concentrate balancing an intermittent power supply and in salt caverns, which is the second largest in hydrogen talent with proven global thought reducing the need for grid expansions. Europe after Germany, of which 72 percent are leadership on green hydrogen. located in the Northern Netherlands. Strategic hydrogen production locations. The integrated value-chain The Northern Netherlands has sufficient phys- Looking beyond 2030, as global hydrogen approach ical space available for offshore wind gener- production and transportation takes off, The Northern Netherlands has adopted ation, transmission, production and transport the Northern Netherlands, with its ports in a systemic approach to creating integrated near ports, and industrial hubs. The strategic Eemshaven and Delfzijl, is set to become the hydrogen value chains. This approach involves and available locations in Eemshaven, Delfzijl European roundabout for European-produced building on integrated ecosystems (project and Emmen are able to meet the 100 PJ per and imported green hydrogen. The ship- HEAVENN) and a strong triple helix of go- annum hydrogen production ambitions of the ping of green hydrogen is also expected to vernment, industry, and knowledge insti- Northern Netherlands towards 2030. increase from locations with cheap and tutions. ample renewable energy supply (e.g., Available and dense infrastructure. The Southern Europe, Africa, and the Middle East). Integrated ecosystems. The Northern Neth- Northern Netherlands has access to an erlands is focused on creating self-sustaining available and dense gas infrastructure, with Gas and hydrogen knowledge. The Northern hydrogen businesses, including SME’s, across high-quality parallel gas pipelines, salt caverns Netherlands has an established ecosystem the value chain, supported by the private and for hydrogen storage, and ports in Delfzijl and with gas expertise in place and is a proven en- public orchestration of projects and invest- Eemshaven. ergy-research and innovation hub that builds ments. Many projects across the value-chain on long-standing innovation (e.g., Gasunie, (production, transport, storage) and end-use The existing high-quality parallel gas pipe- CEER, University of Groningen, applied sci- cases (transport, industry, buildings) are al- line infrastructure in the Northern Nether- ence and vocational training). The region’s ready in place. Recently, the FCH JU¹ award- lands is well-suited to being cost-effectively expertise in gas trading, transportation, and ed the Northern Netherlands flagship project retrofitted to hydrogen, with the potential to innovation plays a vital role in determining “HEAVENN” with a grant and the Hydrogen connect Northwestern Europe (If an invest- the competitiveness and position of a hydro- Valley status. Additionally, the European Un- ment decision in 2021 is facilitated, by Ben- gen ecosystem in the emerging European ion indicated the province of Groningen as elux, Western Germany, Northern France). By economy in the long run. Both the region and the potential receiver of the Just Transition 2025 the hydrogen backbone of the Northern government actively support hydrogen as the Fund, which is very important in expanding Netherlands will be developed with around next frontier in energy technology by support- the Northern Netherlands Hydrogen Valley. 169 km of pipelines. Next, the Dutch and ing pilot projects and bringing together global

1 ‘Fuel Cell Hydrogen Joint Undertaking, European public-private partnerschip to support fuel cell and hydrogen technologies deployment.

16 Exhibit 6. The Northern Netherlands project pipeline of hydrogen production capacity increases from 5 – 10 PJ p.a. by 2025 towards 100 PJ p.a. by 2030 Roadmap phases Phase 1: Phase 2: ~100 PJ/year Mature & scale Northwestern European expansion (25% of NW 5-10 PJ p.a. by 2025 100 PJ p.a. by 2030 EU demand¹)

11b Green hydrogen

Blue hydrogen

11a

1 Addressing 100 PJ 4c p.a. of Benelux, 9a Northwestern Germany, and 1-8 Northern France 2020 2025 2030

Capacity addition Projects Players PJ p.a. GW Date ready Type 1 Battolyser pilot Industry coalition 0.001 0.00002 2019 2 Hydrogen wind turbine Lagerwey 0.02 0.003 2020 3 4 hydrogen wind turbines Lagerwey 0.1 0.01 2020-2022 4 GZI Next Shell, NAM a. 0.1 a. 0.01 2022 Enexis b. 0.8 b. 0.04 2023 Gasunie c. 3.2 c. 0.2 2026

5 DJEWELS 1 Nouryon, Gasunie, BioMCN 0.4 0.02 2022

6 DJEWELS 2 Nouryon, Gasunie 1.7 0.08 2023

7 Electrolyser incl. storage Stichting WadDuurzaam 0.03 0.001 2023

8 Eemshydrogen RWE 1.6 0.1 2023-2024

9 HyNetherlands ENGIE, Gasunie a. 1.6 a. 0.1 2024 (infrastructure partner) b. 12 b. 0.75 2028 c. 16 c. 1 2030 10 H2M Equinor, Gasunie 28 1.0 2027

NortH Shell a. 10 a. 1.0 2027 11 2 Groningen Seaports Gasunie b. 29 b. 3.0 2030 c. 58 c. 6.0 2040

17 NORTHERN NETHERLANDS UNIQUELY POSITIONED The triple helix. The Northern Netherlands the European Commission. Legend has a strong coalition of government, industry, and knowledge institutions. This triple Committed project pipeline helix has proven a key success factor in the The Northern Netherlands has a strong Gas infrastructure acceleration of the hydrogen momentum, project pipeline to accelerate hydrogen devel- with regional and local governments actively opments. There are currently over 50 projects, supporting and developing hydrogen projects to develop a hydrogen ecosystem, in place Interconnector (e.g., via subsidies, orchestration of projects), across the value chain (e.g., electrolyser capac- cross-industry collaborations and global busi- ity, gas infrastructure) with planned private and nesses investing in and developing the eco- public investments amounting to over EUR system (e.g., Engie, Equinor, RWE, Shell and 9 billion by 2030. The mature and scale phase Storage caverns Vattenfall), and knowledge institutions setting until 2025 is focused on developing the first up the facilities to test and scale-up innovation blueprints of the hydrogen ecosystem with (e.g., HydroHub) in the region. Stakeholders in initial production capacity, hydrogen infra- the triple helix are committed to and invest- structure (pipelines, storage), and offshore Existing offshore ed in the hydrogen value chain and in helping wind in place. The Northwestern European wind areas successfully develop the Northern Nether- expansion phase until 2030 is focused on de- H2 lands ecosystem. veloping the full hydrogen ecosystem with a Potential offshore fully-fledge infrastructure backbone at-scale to Eemshaven wind areas Committed regional and local governments. connect stakeholders across the value chain, The regional and local governments are com- both in the Netherlands and beyond. Delfzijl mitted to creating a leading hydrogen ecosys- Hydrogen production tem by taking a supporting and orchestrating In the mature and scale phase until 2025 the role to ensure an effective rollout of integrated hydrogen production capacity is expected to value-chains. This is reflected in the regional increase between 5 to 10 PJ per annum (250 Hamburg smart specialisation strategy (RIS3), in which to 500 MW equivalent), with large projects Port hydrogen is widely embedded. Resources are including DJEWELS 1 and 2, and Eemshydro- made widely available, with for example the gen. The hydrogen infrastructure in the North- Parallel gas Province of Groningen dedicating half their ern Netherlands will be developed to connect Emmen energy and economic affairs staff and budget production, storage, and demand centres in Industry cluster infrastructure to hydrogen-related developments. Co-fund- the area. Moreover, multiple use-case projects ing of projects (e.g., HEAVENN, DJEWELS) is will be launched (e.g., energy transition hub supported via subsidy schemes that are largely around Veendam, Magnum Power Plant in dedicated to hydrogen investments (e.g., Na- Eemshaven, hydrogen homes in Hoogeveen, nowledge center tional Program Groningen). The dedication of SkyNRG in Delfzijl, and GZI Next in Emmen). H2 the Northern Netherlands to kickstart the hy- Amsterdam drogen ecosystem is no empty gesture with In the Northwestern European expansion regional governments already having com- phase until 2030, the hydrogen production mitted significant sums to hydrogen research, capacity is expected to increase to 100 PJ per Single gas infrastructure and end-use, including over annum (of which the green hydrogen share infrastructure EUR 15 million funds to the HydroHub test is 6 GW equivalent), this is comparable to 15 H2 centre, the DJEWELS 1 electrolyser, and the percent of the 2030 European hydrogen pro- HEAVENN project. In addition, regional gov- duction capacity target, with large projects in- ernments allocated millions to hydrogen mo- cluding NortH2 and HyNetherlands. NortH2 is Rotterdam bility in their own fleets and public transport. Europe’s largest green hydrogen project with Moving forward, the financial commitments plans to directly connect 4 GW of offshore Ruhr area will only increase over the coming years. Aside wind to green hydrogen production in Eem- from budgets, regulatory support is provided shaven by 2030. The infrastructure expansion on hydrogen-related spatial planning (e.g., to the rest of the Netherlands, Belgium, West- electrolysers), environmental policies and mo- ern Germany, and Northern France will extend eeland bility initiatives (e.g. buses, trains, ships). Eu- the reach of hydrogen offtake markets and be Western Germany ropean support is advocated for orchestrating the initial effort to create a European hydrogen hydrogen support mechanisms at a European backbone. The first announced large industrial level, with a pivotal role for the Northern Neth- use cases in the region include projects from erlands as leading in the S3 Platform Europe- Nedmag, Kisuma Chemicals and Vattenfall. an Hydrogen Valleys Partnership, facilitated by Antwerp

Chemelot

Milestones 2030 Exhibit 7. Indicative view on the planned hydrogen ecosystem towards 2030

H2Eemshaven Eemshaven Delfzijl Delfzijl Hamburg Hamburg

Parallel gas Parallel gas Emmen infrastructure Emmen infrastructure

H2 AmsterdamAmsterdam

Single gas infrastructure

Rotterdam Ruhr area

eeland Western Germany

Antwerp

Chemelot

19 NORTHERN NETHERLANDS UNIQUELY POSITIONED

Milestones 2030 03 A BLUEPRINT FOR THE REST OF EUROPE

20 The Northern Netherlands is uniquely positioned to become Europe’s leading hydrogen ecosystem and serve as the continent’s hydrogen blueprint. To realise this leading position, the Northern Netherlands has ambitious goals for 2030 and beyond. Pre-2030, the Northern Netherlands will mature and scale its hydrogen ecosystem and expand to full Northwestern European coverage. Post-2030, when the European hydrogen ecosystem is fully developed, the Northern Netherlands will be an established hydrogen ecosystem, renewing its role as a leading “gas roundabout” of Europe.

Pre-2030: annum by 2025 (250 to 500 MW equivalent) The first holistic hydrogen and over 6 GW by 2030. Early uptake by indu- ecosystem as a blueprint stry, mobility, and power sector applications in for the rest of Europe the region is driven by well-designed incentive Over the coming decade, the Northern structures (e.g., subsidies, RED II) and hydro- Netherlands will retain its leading position gen trading market, resulting in cost-compe- within the growing European hydrogen eco- titive green hydrogen applications. Certainty system and become the first region with a in the offtake market stimulates further build- holistic regional ecosystem covering the entire out of green hydrogen production capacity hydrogen value chain. In a two-step approach, and innovation in hydrogen applications. In the Northern Netherlands will mature and addition, the carbon-neutral hydrogen eco- scale up its hydrogen ecosystem by 2025, and system, with its cost-competitive greenfield expand its hydrogen ecosystem coverage to industrial hydrogen use cases (e.g., chemicals all of Northwestern European by 2030. production), attracts globally leading industrial businesses and investment to the region. The Northern Netherlands produces hydrogen Retrofitting existing natural gas infrastruc- cost competitively from offshore wind through ture (e.g., parallel gas pipelines, salt cav- an accelerated project pipeline of electrolysis, erns) via domestic and cross-border projects which will generate 5 to 10 PJ of hydrogen per (e.g., Northern H2 infra, coupling with Ger-

21 A BLUEPRINT FOR THE REST OF EUROPE man H2 Startnetz) will enable the Northern Netherlands to become the leading hydrogen The Northern Netherlands is uniquely positioned to develop a strong green hydrogen infrastructure backbone of the Netherlands ecosystem, attract talent and innovation, and serve as a blueprint for other European regions and Europe. The opportunities in production, infrastructure, and hydrogen end-use create jobs (up to 25,000 FTEs), attract talent Enablers of the Northern Netherlands ecosystem to the region, and stimulate cross-functional Unique hydrogen-related assets in the Northern Netherlands R&D from industry and knowledge institutions. The triple helix of government, industry, Momentum and knowledge institutions in the Northern of project Netherlands further accelerates hydrogen pipeline developments via a common vision and project collaborations across the value chain.

As the first region in Europe with a fully developed hydrogen ecosystem featuring renewable power production, hydrogen production, hydrogen transport and storage, and Private and Strategic At-scale hydrogen offtake markets, the Northern public electrolyzer hydrogen Netherlands provides a blueprint for the rest of investments locations collaborations Europe to develop their own hydrogen ecosystems. This strategy is specifically supported by existing cooperations with the Clean Hydro- gen Alliance, the S3 platform, and Germany (i.e. Niedersachsen). In addition, the Northern Netherlands will have the infrastructure backbone in place to supply Northwestern Europe Regulatory Parallel gas with over 25 percent of its hydrogen demand. mandates infrastructure Post-2030: A leading “hydrogen roundabout” and magnet for talent and innovation By 2030, the Northern Netherlands will have an established hydrogen market structure, Scalable Storage in Talent and with a liquid hydrogen trading market and a offshore salt caverns knowledge fully developed infrastructure backbone. This, wind institutions combined with the region’s large shipping capacity in the Eemshaven and Delfzijl ports, will enable the Northern Netherlands to become the “roundabout” for European-produced and imported green hydrogen. Regional Compared to the pre-2030 hydrogen ecosy- demand stem, the focus in the Northern Netherlands centers will shift from being an early mover across the hydrogen value chain to specializing in cross-cutting hydrogen innovation and technology with rapidly growing and globally leading hydrogen businesses. The accumulation of Milestones 2030 talent and knowledge institutions, combined with strong industry cooperation, will trans- form the region into a centre of excellence for 6 GW 100 PJ >EUR 9 bn 25,000 FTE manufacturing and hydrogen innovation. 400 PJ Dedicated Hydrogen Addressable Investments Job creation offshore wind production hydrogen market

Source: Northern Netherlands Hydrogen Coalition

22 Exhibit 8. The Northern Netherlands is uniquely positioned to develop a strong green hydrogen ecosystem, attract talent and innovation, and serve as a blueprint for other European regions

Enablers of the Northern Netherlands ecosystem

Unique hydrogen-related assets in the Northern Netherlands Momentum of project pipeline

Private and Strategic At-scale public electrolyzer hydrogen investments locations collaborations

Regulatory Parallel gas mandates infrastructure

Scalable Storage in Talent and offshore salt caverns knowledge wind institutions

Regional demand centers

Milestones 2030

6 GW 100 PJ 400 PJ >EUR 9 bn 25,000 FTE Dedicated Hydrogen Addressable Investments Job creation offshore wind production hydrogen market

Source: Northern Netherlands Hydrogen Coalition

23 A BLUEPRINT FOR THE REST OF EUROPE 04 A ROAD MAP TO 2030

24 The Northern Netherlands has a strong road map in place to build up the Dutch and Northwestern European hydrogen backbone. The plan is to mature and scale up its integrated hydrogen ecosystem to a clean hydrogen 04 capacity of 5 to 10 PJ by 2025, and to a capacity of 100 PJ by 2030. A large project pipeline is in place to drive the Northern Netherlands hydrogen road map forward, with A ROAD projects dedicated to short-term production (DJEWELS 1 & 2), infrastructure (connecting the Northern Netherlands’ industrial clusters and storage caverns), and demand MAP TO 2030 (Groningen and Drenthe energy transition hubs), plus

larger ecosystem-wide projects (HEAVENN, NortH2).

hydrogen as feedstock to produce renewable Phase 1: Mature and e-methanol, which can replace grey methanol scale up the Northern in industrial applications and be used as renew- Netherlands hydrogen able synthetic fuel in transport. Several indu- ecosystem (2020 to 2025) stries in central and eastern Groningen envi- Over the past two years, the region success- sion a transition from natural gas to green gas fully established innovation hubs, hydrogen (9 PJ per annum), which could make hydrogen pilots, and demo projects, like the HydroHub, a viable option because of their strategic lo- HyStock, and Ecolution, which kick-started the cation next to foreseen hydrogen production development of the Northern Netherlands hy- facilities. Other hydrogen end-use initiatives drogen ecosystem. In the “mature and scale” include the energy transition hub in Veendam, phase, from now until 2025, over 35 projects a residential heating pilot in Hoogeveen, and covering the entire hydrogen value chain are a renewable e-methanol production in Delfzijl. planned, including hydrogen demand investments in hydrogen end-use applications, Infrastructure and logistics. The North- infrastructure and logistics investments in ern Netherlands hydrogen infrastructure is hydrogen transport and storage, production planned to be complete by 2025, with 169 km investments in offshore wind and hydrogen of hydrogen pipelines and an initial storage production capacity, and knowledge and in- capacity of 0.5 PJ in salt caverns, connecting novation investments across the full hydrogen Eemshaven, Delfzijl, Emmen, and other hydro- value chain. This broad systemic approach gen storage locations. The hydrogen transport of projects across value chains ensures the pipeline will be made up of 29 km of newly coordinated progression of the Northern built pipelines plus around 140 km of existing Netherlands hydrogen ecosystem and will pipelines from the parallel gas infrastructure. form the blueprint to rollout hydrogen in- In addition, 5,000 tons of hydrogen storage frastructure across Northwestern Europe capacity (0.5 PJ equivalent) will be made avai- (Benelux, Western Germany, Northern France). lable at Zuidwending to balance hydrogen supply and demand. Demand. With over 20 hydrogen demand projects already in place, hydrogen end-use Production. 0.7 GW of offshore wind and applications in different sectors (mobility, in- 1.25 GW of onshore renewable capacity are dustry, power, buildings) will be piloted or planned to be installed by 2025. This is in ad- scaled up over the coming years. Hydro- dition to the 1.8 GW of renewable capacity gen demand in the mobility sector will be that is already available. To unlock the 2030 kick-started by introducing various hydrogen Northern Netherlands ambition level of 6 GW vehicles, such as long-distance buses, trucks, of electrolyser capacity (around 75 PJ per trains, ships, and drones, with the required annum equivalent), the initial projects need hydrogen refuelling stations in place. Bi- to be fully secured with offshore wind supply oMCN announced at-scale consumption of and the larger projects for 2030 need initial,

25 A ROAD MAP TO 2030 at-scale offshore wind commitments. In the sion reduction targets by 2030, with 0.5 Mt of regional hydrogen offtake markets in the short term, hydrogen production will require 4 annual GHG emissions reduced by 2025. Netherlands and Northwestern Europe, with to 6 GW of dedicated offshore wind capacity, the main infrastructure backbone planned to which must be spatially planned to ensure suc- Phase 2: Northwestern be ready by 2027. The emerging backbone cessful investment decisions for the Northern European expansion of the is largely based on retrofitted natural gas in- Netherlands hydrogen ecosystem. In terms Dutch hydrogen ecosystem frastructure, achieved through the conversion of hydrogen production capacity, around 5 to (2025 to 2030) of existing pipelines where parallel (“looped”) 10 PJ of electrolyser capacity (250 to 500 MW Ten large projects are already in place to re- routes are available. By 2030, this will trans- equivalent) is planned to be installed by 2025, alise the Northwestern European expansion late into a dedicated Dutch hydrogen back- with projects including DJEWELS 1 and 2, of the hydrogen ecosystem by 2030. This bone of around 1,150 km and a European Eemshydrogen, and HyNetherlands. However, will create a stepping stone for the Northern hydrogen backbone of approximately 6,800 to realise these projects, further clarity and the Netherlands to become the European back- km, connecting the Netherlands, Germany, support of regulatory frameworks are required bone of hydrogen infrastructure and to ensure Belgium and parts of France. Furthermore, to mandate production asset build-out and a cost-competitive hydrogen production hub four hydrogen storage locations in salt caverns long-term hydrogen demand. beyond 2030. will also be connected. Additional, unconnec- ted regional networks are likely to emerge in Knowledge and innovation. Strong com- Demand. The addressable 2030 hydrogen Italy, Spain, Denmark, Sweden, France, and mitment to talent and knowledge institutes demand in Northwestern Europe (Benelux, Germany, which are likely to be connected provides a human resource basis for the Western Germany, Northern France) is ex- after 2030. developments to come. Therefore, investments pected to increase from 340 PJ today to over in education and R&D are necessary to build hy- 400 PJ by 2030, when considering the 1.5-de- Production. Annual production capacity drogen expertise in the Northern Netherlands, gree scenario of the 2016 Paris Agreement. will significantly increase to around 100 PJ, such as professional training programs or job The largest offtake markets are refining (36 of which 75 percent will be green hydrogen certificates. The regional governments sup- percent of 2030 demand), ammonia (31 per- (6 GW equivalent) and 25 percent will be blue port vocational training to develop blue-collar cent of 2030 demand), and iron and steel (25 hydrogen. Large green hydrogen projects in- technical capabilities (installation, engineering, percent of 2030 demand). In addition, the clude HyNetherlands and NortH2. Given the etc.). Knowledge institutes have incorporated uptake of green hydrogen will create demand addressable hydrogen demand of around programs focused on technical and business-re- for new hydrogen applications such as che- 400 PJ per annum in Northwestern Europe, lated hydrogen topics (e.g., CEER, Hanzehoge- micals and biofuels (4.5 percent of 2030 when considering the 1.5-degree scenario school). The HydroHub provides a testing bed demand), trucks (2.5 percent of 2030 of the 2016 Paris Agreement, the Northern to scale up hydrogen use cases. Lastly, the New demand), and trains, ships, and aviation Netherlands will be able to supply around Energy Coalition and DNV GL offer hydrogen (1 percent of 2030 demand). Initial forecasts 25 percent of Northwestern Europe demand courses for energy professionals. for hydrogen end-use are already being by 2030. To realise 6 GW of green hydrogen made, with Vattenfall, Kisuma Chemicals, and production capacity by 2030, significant ad- The maturing and scaling up of the Northern SkyNRG announcing large quantities of hy- ditional offshore wind capacity and electricity Netherlands hydrogen ecosystem – based on drogen demand (11 PJ) for power generation transmission infrastructure needs to be made the current project pipeline – builds on EUR (demonstration project CO2-free flexible pow- available. The required spatial planning for 850 million of planned investments, of which er generation) and industry feedstock by 2030. additional capacity needs to be done in the most are private investments, and is expected next two to three years to ensure the timely to attract over 5,000 hydrogen-related jobs. Infrastructure and logistics. The Northern build-out of sufficient offshore wind. In addi-

Hydrogen will increasingly realise CO2 emis- Netherlands will be connected to the main tion, the power grid and water management infrastructure have to be in place to support the increased power and fresh water demands Hydrogen chemicals cluster as e-fuel for hard-to decarbonize transport of electrolysers. The project DJEWELS 1 and DJEWELS 2 are applications such as shipping. Compared to exemplary of the integrated hydrogen ecosys- fossil-based methanol this will reduce emis- The expansion of the Northern Netherlands sions by up to 27,000 tons of CO per year. To tem approach of the Northern Netherlands, 2 hydrogen ecosystem – based on the current ensure short-term realisation of the chemicals with the chemical industry as main offtake mar- project pipeline – builds on EUR 9 billion of cluster, an integrated ecosystem was set-up ket. As international consortium, Nouryon and planned investments, of which EUR 63 million with DJEWELS and BioMCN being co-located Gasunie, with initial funding from the European are in hydrogen demand applications, EUR Union and the Waddenfonds, will develop two to minimise short-term infrastructure needs as 1.8 billion in infrastructure and logistics, and electrolyser facilities over the coming years: the Northern Netherlands hydrogen pipeline EUR 7.8 billion in production projects. In ad- DJEWELS 1 with 20 MW capacity and DJEW- infrastructure is under construction. These dition, the Northern Netherlands 2030 project ELS 2 with 80 MW capacity. On the demand initial commitments and the integrated eco- side, BioMCN has announced their intention to system approach have accelerated hydrogen pipeline is expected to create 25,000 FTEs in use the green hydrogen – in combination with developments and attracted other hydrogen hydrogen-related jobs. Moreover, given the chemical businesses to join the region, such as potential for green and blue hydrogen to re- CO2 from other processes – to produce renewable methanol, which can be used as chemical SkyNRG with their plans to use green hydro- place natural gas combustion, the usage of feedstock to phase out fossil feedstock and gen to produce clean aviation fuel. hydrogen has the potential to contribute to

26 lowering CO2 emissions by 5 to 10 Mt, which place. However, Dutch (and European) gov- production facilities, and pipeline and storage is 3 to 6 percent of 1990 Dutch emission ernmental support is needed to ensure sound infrastructure. These prerequisites can only be levels. And since there are also other, more hydrogen business cases, which are required achieved through a synchronised investment carbon-intensive, end-use applications that to realise the planned project pipeline. and regulatory plan that secures integrated val- hydrogen has the potential to replace (e.g., ue chains in the Northern Netherlands, which heavy-duty vehicles, shipping, steel manu- The maturing and scaling phase, which will have to be orchestrated throughout a complex facturing), the expected CO2 reduction be- run until 2025, requires a set of short-term and environment of globally interconnected busi- cause of hydrogen is expected to go beyond long-term regulatory mechanisms (e.g., ex- nesses and public body’s, with presence and

5-10 Mt CO2 per annum. emptions of RED II additionality requirements), strategic focus beyond the Netherlands. and financial commitments (e.g., bridging the Prerequisites to realise the investment gap for infrastructure by 2021; Financial support is needed in the coming dec- hydrogen road map of the expression of interest schemes for scale-up ade to bridge the price gap between green Northern Netherlands projects) that mandate the timely execution hydrogen end-uses and fossil fuel alternatives To realise the hydrogen road map of the of hydrogen projects. Prerequisites for realiz- that are based on grey hydrogen, or other Northern Netherlands, a set of prerequisites ing the 2030 Northwestern European expan- fossil fuels (coal, natural gas). The expected must be fulfilled. Businesses and governments sion include a sustainable hydrogen demand cost reduction of green hydrogen by 2030 in the region have already committed to the market, supported by regulatory frameworks reduces the price gap between green and Northern Netherlands becoming the hydro- mandating hydrogen usage, a trading mar- grey hydrogen from EUR 1.6 per kg in 2025 gen backbone of Europe, with significant in- ket matching supply and demand, and the to EUR 0.25 per kg by 2030. Given the green vestments, resources, and planned projects in build-out of offshore wind capacity, hydrogen hydrogen production capacity increase from 5 to 10 PJ per annum in 2025 to around 75 PJ Exhibit 9. per annum by 2030, the total value gap to be The Northern Netherlands hydrogen roadmap 2030 bridged will be EUR 80 million to 160 million focuses on scaling up the hydrogen ecosystem and in 2025 and around EUR 180 million by 2030. expanding the network to Noth-western Europe As this assumes only a direct transition from grey to green hydrogen, the realistic price gap will likely be larger, due to potential hydrogen Phase 1 Phase 2 end-use applications in hard-to-abate sectors Mature& scale Northwestern (e.g., heavy-duty trucks, steel manufacturing). Roadmap phases (2020 – 2025) European expansion (2025 – 2030) Hydrogen mobility cluster Hydrogen 5 – 10 PJ p.a. 100 PJ p.a.¹ With over 15 mobility projects ongoing or production capacity close to being started, the Northern Neth- erlands has created mobility opportunities Green hydrogen 3.3 EUR per kg 2.3 EUR / kg across the entire value chain, with a com- production costs mitted triple helix developing the hydrogen ecosystem. Innovative pilots are launched to showcase the potential (H Grow, High Investment needed EUR ~850 million EUR ~9 billion 2 V.LO-City, hydrogen fuel cell train). Demand Jobs created² ~5,000 FTEs ~25.000 FTEs is mandated by regional governments com- mitting to hydrogen in public transport use cases (e.g., buses, ships, trains). Infrastruc- CO abated 0.28 – 0.56 million ton CO2 5.6 – 11.2 million ton CO2 2 ture of hydrogen refueling stations and sup- Description • Mature and scale an • Expand Northern porting hydrogen delivery trucks is rolled out by private (Shell, Holthausen, Green integrated Northern Netherlands hydrogen Planet, Pitpoint) and public investments. Netherlands hydrogen ecosystem to serve Furthermore, new mobility opportunities are ecosystem by synchroniz- Northwestern Europe entering the Northern Netherlands region ing investments along the by increasing production as global business are attracted to the value chain (production, capacity and connecting the unique combination of the Northern Neth- infrastructure, demand) larger region erlands hydrogen ecosystem, the systemic • Develop the blueprint approach to develop hydrogen use cases, to rollout hydrogen and the ongoing hydrogen mobility project infrastructure at-scale pipeline. As example, only recently Hyzon Motors announced to open their European 1. GW of green hydrogen production next to 28 PJ p.a. hydrogen ecosystem towards 2030 headquarters and hydrogen truck manufac- of blue hydrogen production towards scale-up of the 2. Including both recurring and one-off jobs turing business in the Northern Netherlands. Source: Northern Netherlands Hydrogen Coalition

27 A ROAD MAP TO 2030 05 SUPPORT NEEDED – 10 ACTIONS

28 The Northern Netherlands needs support to realise the Dutch hydrogen opportunity. Private and public stakeholders are committed to the Northern Netherlands, but additional governmental commitments to offshore wind, regulatory frameworks, and short-term funding are needed to bridge investment gaps. Pre-2025 projects require short-term regulatory incentives and additional funding, such as an exemption from the RED II requirement for additionality and correlation, additional funding (e.g., expression of interest schemes), and compensation programs for initial investment gaps of future-proof infrastructure. Clear regulatory frameworks must be implemented in the next two to three years to enable the next phases of these projects, most of which require a financial investment decision before 2025. Only this will ensure the timely rollout of the Northern Netherlands and Dutch hydrogen ecosystem.

To realise the short- and long-term project that green hydrogen production can only pipeline, a set of mechanisms must be im- be supplied through (new) additionally plemented in four key areas: (A) overall pro- developed renewable energy capaci- gram management, (B) hydrogen production, ty, and not through power from current infrastructure, and demand, (C) offshore wind renewable plans or renewable assets. capacity, and (D) the larger hydrogen ecosys- It is recommended that until significant tem. Within these four areas, ten mechanisms further renewable energy build-out is re- were identified that are required to unlock the alised, a capacity of up to 1 GW of renew- Dutch hydrogen opportunity. able power be made available for green hydrogen production, in line with the A. Hydrogen production, build-out of electrolyser capacity. infrastructure, and demand 1. Exemption from the RED II additionality 2. Introducing hydrogen scale-up funds and and correlation requirement during the support instrumentation (e.g., expression mature and scale phase until 2025. To of interest schemes) with sufficient size to ensure the scale-up of green hydrogen bridge investment gaps of critical hydro- with sufficient renewable power in the gen ecosystem assets. To ensure time- short term, hydrogen scale-up projects ly financial investment decisions for the must be exempted from the Renewable Northern Netherlands project pipeline in Energy Directive II (RED II) additionality both the short and long term, investments and correlation requirement. RED II states need to be derisked significantly. This re-

29 SUPPORT NEEDED – 10 ACTIONS Exhibit 10. Critical hydrogen support mechanisms are needed over the next 1 – 3 years to realise the near-term ecosystem developments and to unlock the long-term 2030 ambition level

Short-term mechanisms required for ...

Area To realize Phase 1 ambition level To unlock Phase 2 ambition level (2020-2025) (2025-2030)

Hydrogen 1 Ensuring a supporting regulatory framework 4 Incentivizing hydrogen demand uptake via production, for production and demand-side by exempting supporting regulatory frameworks and a infrastructure the additionality and correlation requirements hydrogen trading market and demand of the RED II: add: and measures to stimulate he use of hydrogen or its derivatives in end-use markets 2 Introducing hydrogen scale-up funds and support instrumentation to bridge investment gaps of critical hydrogen ecosystem assets 3 Compensation of the initial investment gap for critical infrastructure to ensure future-proof infrastructure investments that facilitate the rollout of the hydrogen ecosystem

Offshore wind 5 Acceleration offshore wind developments by energy advancing the spatial planning of at least 4 to 6 GW of dedicated offshore wind capacity above the Northern Netherlands

Larger hydrogen 6 Investing in the larger hydrogen ecosystem 7 Transitioning intangible assets (talent, ecosystem needs via educational programs and supporting knowledge, innovation) from other industries innovation centres in the region

Overall 8 Assigning the majority of the allocated Just 10 Orchestrating a systemic national approach Transition Fund budget to the Northern to the end-to-end developments of the Netherlands hydrogen ecosystem and ensuring develop- 9 Steering hydrogen ecosystem developments ments are aligned in collaboration with Transformation and Coordination office

Mechanisms needed in next 1 – 2 years Mechanisms needed in next 2 – 3 years

Source: Northern Netherlands Hydrogen Coalition

30 quires adding funds and instrumentation Volume mandates can incentivise hydro- D. Overall program to support investment gaps during the gen consumption for final end-user appli- management mature and scale phase until 2025. Expres- cations. Such mandates can be industry 8. Assigning the majority of the allocat- sion of interest schemes are – if done well specific and designed according to the ed Just Transition Fund budget to the – an effective way to do so and can pro- ease of exchanging the incumbent technol- Northern Netherlands. The European Un- vide governmental funding for a set of key ogy with green or blue hydrogen. Feed-in ion has created the Just Transition Fund to projects (e.g., via tendering), which can be tariffs can be used to compensate for price support regions in addressing the social, allocated to interested developers. Anoth- gaps between the investment required for economic and environmental impacts of er mechanism to facilitate timely financial hydrogen versus the next-best low-carbon the transition to a low carbon economy. investment decisions on projects is to grant technology. Hydrogen trading schemes, in The European Union indicated the prov- certain permitting exemptions for relevant line with the EU Emission Trading Scheme ince of Groningen as the potential receiver subsidies, such as accelerating right-of-way or the Australian Renewable Energy Target, of the Just Transition Fund, which is very approvals for new pipeline infrastructure or are other potentially effective methods to important in expanding the Northern environmental permits for new hydrogen mandate hydrogen consumption. Netherlands hydrogen valley. A majority of production facilities. the national allocated JTF-budget should B. Offshore wind capacity therefore be assigned to the Northern 3. Compensation of the initial investment 5. Acceleration of offshore wind develop- Netherlands. gap for critical infrastructure to ensure ment for hydrogen. Significant additional future-proof infrastructure investments that offshore wind capacity is required to realise 9. Transformation and Coordination office. facilitate the rollout of the hydrogen eco- green hydrogen production of around 75 The Northern Netherlands Transformation system. Essential to the development of PJ per annum (6 GW equivalent) by 2030. and Coordination (T&C) office requires a hydrogen ecosystem is hydrogen infra- Current plans for 1.2 GW of offshore wind national support to collaborate on criti- structure, including pipelines and storage. capacity near the Northern Netherlands cal topics. A Northern Netherlands T&C The Northern Netherlands has a systemic are not sufficient, and at least 4 GW of ad- office will ensure coordination, collabora- approach to building the regional infra- ditional capacity is required by 2030. Given tion and alignment of stakeholders across structure, which will comprise around 169 the long lead times in offshore wind devel- the entire value chain, which will go be- km of pipelines and 5,000 tons of storage opments, the government needs to decide yond the Northern Netherlands only. Led capacity in salt caverns (0.5 PJ equivalent) in 2021 on expanding the spatial planning by Northern Netherlands businesses, the by 2025. The pipelines are mostly existing of at least 4 to 6 GW of offshore wind park T&C office will facilitate these conversa- parallel gas pipelines of which the redun- capacity, dedicated to green hydrogen tions, keep track of the project pipeline, dant parts are retrofitted to enable hydro- production, near the Northern Netherlands manage external stakeholder communi- gen transport. The investment decision for in the next one to two years. cation, and ensure the accountability of the transport and storage infrastructure is all stakeholders to their commitments. needed in 2021 and will therefore precede C. Larger hydrogen the development of the market. To ensure ecosystem 10. End-to-end governmental orchestra- a future-proof investment, the capacity of 6. Investment in initial hydrogen ecosystem tion. To ensure a systemic approach to the infrastructure for transport and storage build-up. When developing the hydrogen developing a Dutch hydrogen ecosystem, needs to be scaled to future demand. At ecosystem, intangible essentials need to end-to-end governmental orchestration final investment decision, this will cause be addressed as well. Due to the ongoing is needed. Hydrogen ecosystem devel- an investment gap which needs to be de- gas phaseout, existing gas-related emplo- opments along the value chain are highly risked. To achieve competitive pipeline yees are to be reskilled for hydrogen- intertwined (e.g., green hydrogen capa- throughput fees, a compensation method related jobs. Educational courses rele- city is mostly dependent on the available would be required during these ramp-up vant to the hydrogen industry should be renewable energy capacity from offshore years. developed. The regional population also wind). Regional and national govern- needs to be supported in the transition ments need to work together to ensure 4. Mandates for hydrogen end-use ap- to a hydrogen ecosystem. Information system-wide orchestration to account for plications. Currently, green hydrogen is sessions and transparent communication the interdependencies in the value chain. often not competitive with existing tech- can contribute to building the larger hydro- nologies or grey hydrogen. To bridge gen ecosystem. A way to ensure successful governmental the price gap and incentivise green hy- orchestration is to develop an end-to-end drogen consumption, favourable regula- 7. Transition of intangible assets. To expand Dutch hydrogen strategy with integrated tory frameworks need to be developed. the hydrogen ecosystem by 2030, several targets throughout the hydrogen ecosystem. There are multiple ways to mandate long-term mechanisms for transitioning in- This ensures an effective build-out, where, for and targets hydrogen end-use applica- tangible assets need to be addressed in the example, offshore wind capacity is expanded tions, such as volume mandates, feed- short term. It is critical to attract highly spe- in line with the planned electrolyser capacity in tariffs, guarantees-of-origin, trading cialised talent to the region, and to commit build-out and hydrogen demand mandates. schemes, or blending mandates targets R&D funding to developing world-leading for use of hydrogen or its derivatives. hydrogen innovation and expertise.

31 SUPPORT NEEDED – 10 ACTIONS 06 IMPLEMENTATION PLAN NEXT 18 MONTHS

32 To realise the hydrogen opportunity in the Northern Netherlands, the triple helix of government, industry, and knowledge institutions has developed an 18-month implementation plan (see detailed plan in the Appendix). The Northern Netherlands has acknowledged the need for a systemic approach to developing a full-fledged hydrogen ecosystem with initiatives across the value chain. With regional collaborations, the Northern Netherlands plans to expedite hydrogen developments and innovation to position the region as the backbone of and blueprint for the Northwestern European hydrogen ecosystem. The implementation plan addresses the efforts that the Northern Netherlands will take, in line with the four key areas introduced in Chapter 5. In addition, the plan highlights which short-term government actions are required to unlock the Dutch hydrogen opportunity.

A. Hydrogen production, 3. Forecasting aggregated hydrogen de- infrastructure, and demand mand for expected use cases to match The Northern Netherlands is committed to hydrogen production and supply, and developing the hydrogen ecosystem, cover- developing hydrogen purchase agree- ing production, infrastructure, and demand. In ments to derisk production and demand 2020, the region will set up a hydrogen use investments. case work group to develop a detailed timeline for rolling out hydrogen use cases until In 2020 (until early 2021), a Northern 2025 and matching demand and supply to Netherlands project work group will examine derisk investments, with actions including: the challenges and opportunities faced by the short- and long-term project pipeline. The 1. Identifying priority hydrogen use cases to work group will identify potential for cross– develop by 2025 – based on decarbon- value chain initiatives (e.g., centralization of isation potential, project feasibility, and supply and demand, purchase agreements, economic impact – and developing imple- hydrogen trading market), and outline key are- mentation timelines as of interest for realizing the planned projects, such as the potential of supporting regulatory 2. Identifying quick-win hydrogen use cases frameworks (e.g., RED II, trading credits, feed- which can be implemented cost-effectively in tariffs, trading schemes). in the short term

33 IMPLEMENTATION PLAN NEXT 18 MONTHS In 2020 and 2021, as budgets are made and to identify any necessary grid expansions for External need: To ensure socioeconomic potential funds are granted (e.g., the JTF facilitating the offshore wind expansions. benefits for the Netherlands, Dutch govern- fund), regional governments will allocate mental support is needed over the next one to significant amounts of their budgets to crit- External need: With the Dutch government two years to orchestrate national job programs ical hydrogen ecosystem projects to ensure leading the spatial planning process of off- to educate new talent or reskill existing talent. the systemic development of the Northern shore wind, the Northern Netherlands seeks In addition, potential regulatory incentives are Netherlands hydrogen ecosystem. to collaborate with the government over the needed to support neighbouring industries next 6 to 12 months to develop an offshore (e.g., natural gas, water management) in tran- External need: To ensure constructive national wind expansion road map that provides sitioning to hydrogen use cases. collaboration on hydrogen developments and systemic benefits to the Netherlands while the required regulatory support mechanisms, realizing the Northern Netherlands hydrogen D. Overall program the Northern Netherlands invites national project pipeline. management government representatives to join work To ensure a well-orchestrated, systemic groups. To realise positive financial investment C. Larger hydrogen approach to hydrogen in the Northern decisions in the coming one to two years, ecosystem Netherlands, a transformation and coordina- immediate regulatory mechanisms are need- To create a larger ecosystem supportive of the tion office will be set up in the fall of 2020, ed (e.g., RED II additionality exemptions, ex- developments in hydrogen, various actions led by the private sector. Orchestrated (and pression of interest schemes). Furthermore, will be carried out. Over the period from 2020 facilitated) by the transformation and coor- initial regulatory frameworks (e.g., volume to 2021, the transition potential of jobs will be dination office, work teams will develop the mandates, feed-in tariffs, trading schemes) identified and supported through knowledge region’s short- and long-term strategies, need to developed to ensure a sustainable institutions and regional governmental regula- identify white spaces in the value chain, and hydrogen market in 2030. These frameworks tions and financing. To systematically address connect interdependencies in the project will mandate the expansion of the Northern the job transitions, three actions will be taken: pipeline. In addition, the transformation and Netherlands hydrogen ecosystem to coordination office will ensure that the pro- Northwestern Europe by 2030. 1. A detailed map will be made of gas-relat- ject is well orchestrated by putting in place ed jobs that are likely to be phased out in project performance indicators, frequent com- B. Offshore wind capacity the region, building on existing analysis. munication forums (and other communication The Northern Netherlands’ green hydrogen methods), and key responsible stakeholders plans largely rely on scaling up offshore wind. 2. Jobs related to the hydrogen ecosystem throughout the ecosystem. A systemic approach is required to ensure the will be identified, including their required offshore wind scale-up supports the scale-up skill sets. External need: To ensure the Netherlands of the entire Northern Netherlands hydrogen effectively develops its hydrogen ecosystem, ecosystem. 3. Support mechanisms (e.g., professional cross-regional orchestration of hydrogen eco- training, reskilling programs, job certif- system developments is needed. A Dutch In 2020 (until early 2021), a Northern icates) will be put in place to boost the hydrogen road map with clear focus areas, Netherlands project work group will develop transformation of existing jobs, attract combined with cross-regional work groups, a minimal viable timeline of phased offshore and develop new talent, and create an at- will enable an effective rollout of the Dutch wind expansions required to realise the re- tractive investment proposition for global hydrogen ecosystem. gion’s 2030 hydrogen ambitions. In addition, hydrogen businesses. the regional grid requirements will be assessed

34 35 IMPLEMENTATION PLAN NEXT 18 MONTHS APPENDIX

36 List of Northern Netherlands hydrogen projects 38

The Northern Netherlands road map 40

The Northern Netherlands implementation plan 41

List of sources 42

APPENDIX

37 NORTHERN NETHERLANDS UNIQUELY POSITIONED Exhibit 11. Mature and scale List of Northern Netherlands hydrogen projects Northwestern European expansion

Date Company Name Project Location Capacity1 ready PJ per annum MW Industry coalition Battolyser pilot plant Eemshaven 0,001 0,015 2019

Lagerwey H2 windturbine Eemshaven, Delfzijl 0,02 2-3 2020

Lagerwey 4 H2 windturbines Eemshaven, Delfzijl 0,1 10 2020-22 Shell, EBN, Gasunie GZI Next Phase 12 Emmen 0,1 10 2022 Nouryon, Gasunie DJEWELS 1 Delfzijl 0,4 20 2022 Nouryon, Gasunie DJEWELS 2 Delfzijl 1,7 80 2022 Shell, EBN, Gasunie GZI Next Phase 22 Emmen 0,8 40 2023 St. WadDuurzaam, St. Humsterland Electrolyser including storage Lauwersoog 0,025 1,5 2023-24 RWE Eemshydrogen Eemshaven 0 100 2023-24 Engie, Gasunie (infrastructure partner) HyNetherlands Phase 1 Eemshaven 0,03 100 2024 D4 Biomass and electrolysis Leeuwarden 0,1 10 2024 hydrogen production Shell, EBN, Gasunie GZI Next Emmen scale-up2 Emmen 3,2 200 2026 Hydrogen production Hydrogen Equinor, Gasunie H2M, blue hydrogen via ATR Eemshaven 28 1.000 2027 Nouryon 200MW electrolyser Delfzijl 3,2 200 2027

Gasunie, Shell, Groningen Seaports NortH2 Phase 1 Eemshaven 10 1.000 2027 Engie, Gasunie (infrastructure partner) HyNetherlands Phase 2 Eemshaven 12,3 750 2028 Engie, Gasunie (infrastructure partner) HyNetherlands Phase 3 Eemshaven 16,4 1.000 2030

Gasunie, Shell, Groningen Seaports NortH2 Phase 2 Eemshaven 29 3.000 2030

Gasunie, Shell, Groningen Seaports NortH2 Phase 3 Eemshaven 58 >6.000 2040 PJ per annum Gemeente Groningen Distribution of hydrogen to Northern Netherlands - 2018 refuelling stations

Groningen Seaports, Teijin Aramid H2 distribution Chemiepark Delfzijl - 2019 Delfzijl Gasunie Hydrogen backbone Northern Northern Netherlands - 2025 Netherlands Gasunie/EnergyStock Hystock phase 1: Zuidwending 0,5 2025 small hydrogen cavern Gasunie Hydrogen backbone NL NL and Western Germany - 2027-30

Hydrogen infrastructure Hydrogen Gasunie/EnergyStock Hystock phase 2: multiple large Zuidwending - 2030 hydrogen caverns NAM & Partners Small chain: infrastructure Northern Netherlands - - refurbishment PJ per annum Nouryon, QBuzz, Pitpoint, High V.LO-City project Delfzijl 0,002 2017 and others Kisuma Chemicals High Temperature Pressure Veendam 0,05 2027 Swing Absorption Holthausen, Green Planet en Pitpoint 8 refueling stations Northern Netherlands - 2019-22 Emmtec and customers High-temperature heat and Emmen 0,1 - 3,5 2020 electricity

St. WadDuurzaam H2 Ecolution: boost hydrogen Lauwersoog - 2020-21

Hydrogen demand Hydrogen ships in the Wadden Municipality of Groningen Over five mobility initiatives (e.g., Groningen - 2020-22 fuel facilities, municipal vehicles)2

Municipality of Hoogeveen Residential heating Hoogeveen2 Hoogeveen - 2020-23

38 Date Company Name Project Location Capacity1 ready PJ per annum Holthausen Fuel cell and FCEV refurbishment Hoogezand - 2020-25 factory Hyzon Hydrogen truck factory producing Groningen 2021 2000 trucks per year ISPT and Partners HydroHub: Hydrogen R&D hub Groningen - 2021 on EnTranCe Orange Gas, Resato Five hydrogen refueling stations Drenthe - 2021 OV bureau Groningen Drenthe 20 buses in Groningen and 2021 10 in Emmen Theo Pouw Secundaire Hydrogen truck Groningen tbd 2021 Bouwstoffen BV Lauwersoog Water Ev.s, St. Wad Duurz. Two shipping and fishing initiatives Lauwersoog - 2021-23 Nedmag Regional energy transition hub Veendam 1,2 2023 Groningen BioMCN Production of renewable Delfzijl - 2023

e-methanol from low-carbon H2 Theo Pouw BV Hydrogen vessel Groningen, Eemshaven 50 2022 NPRC, Nouryon, HyEnergy Weva 1, 2 and 3 (shipping) Delfzijl - 2023-2025

Hydrogen demand Hydrogen Transstore, Lenten Scheepvaart Province of Groningen Hydrogen train Province of Groningen 2024 Avebe Potato trucks on hydrogen Gasselternijveen, Ter 1 000 000 kg/yr 2025-2030 Apelkanaal Vattenfall Magnum power plant with 30% Eemshaven 0,6 2025 hydrogen co-blending Vattenfall Magnum power plant on 100% Eemshaven 10,8 2027 hydrogen Kisuma Chemicals Phasing out of natural gas Veendam 0,3 2030 Shell and Partners Hydrogen refueling stations Northern Netherlands - - SkyNRG Supply Line (DSL-01) for aviation Delfzijl - - fuel production NES Blending of 20% hydrogen in gas grid Ameland - - Kisuma Chemicals Scale-up of HT-PSA Veendam 0,006 - Avebe Steam production with hydrogen 3 sites in Northern 2.4 2030 Netherlands Corre Energy and Nouryon Hydrogen for Compressed Air Zuidwending Energy Storage Municipality of Groningen Greening 100 municipal vehicles 2030 and machines PJ per annum Hanzehogeschool and partners Green Hydrogen Booster Entrance Groningen - <2020 VNO NCW MKB Noord and partners Hydrogreenn Northern Netherlands - <2020 Energy College Gas 2.0 programme for vocational Northern Netherlands - <2020 training University of Groningen Various energy majors, minors and Groningen - <2020 research programmes Hanzehogeschool Three energy master programmes Groningen - <2020 Fryslan Wetsus Centre of excellence sustainable Friesland - <2020 water technology Energy campus Leeuwarden Sustainable energy production Friesland <2020 New Energy Coalition and partners HyDelta research programme Groningen and other - 2020-21 regions New Energy Coalition and partners HEAVENN2 Northern Netherlands - 2020-26 ISPT and partners Hydrohub MW test centre Groningen - 2021

Hydrogen research and innovation research Hydrogen DNV GL Hydrogen Innovation Centre Groningen - 2021 Liander, Groenleven and partners Pilot for hydrogen storage at Oosterwolde 0,01 1,4 2021 solar park FME Green shipping Waddenzee Northern Netherlands - - Municipality Emmen and partners EmmTrance vocational training Drenthe - - facility hydrogen 1 Conversion of hydrogen capacity is done by power throughput (100 MW is the equivalent of 1.6 PJ per annum) and hydrogen weight (1,000 tons of hydrogen is the equivalent of 0.1 PJ per annum). 2 (Some of which are) part of HEAVENN. 39 APPENDIX Exhibit 12. The Northern Netherlands road map

Phase 1 Phase 2 2020 - 2025: Mature and scale 2025 - 2030: Expand to Northwestern Europe

Overall project Over 35 projects in place (e.g., HEAVENN) Over 10 long-term projects in place (e.g., NortH2) details Over EUR 850 mn of planned investments Over EUR 9 bn of planned investments

Production 2 GW of renewable power capacity to be in- Realize at least 10 GW of additional offshore wind in the (power and stalled and additional capacity to be planned Northern Netherlands hydrogen Realize 5 – 10 PJ per year of hydrogen produc- production) tion capacity (250 – 500 MW equivalent) (e.g., Realize 100 PJ per year of hydrogen production capacity, DJEWELS) of which ~75 will be green hydrogen (6 GW equivalent)

Infrastructure Develop initial Northern Netherlands hydrogen Expand hydrogen backbone to all of the Netherlands and and logistics pipeline network of 169 km (Eemshaven – Delfzijl regional hubs in Belgium, Western Germany and Northern (pipelines, – Emmen) France storage, ports) Connect initial storage capacity of 0.5 PJ in salt Connect 3 – 4 large-scale hydrogen storage caverns caverns

Demand (end Over 20 projects in place across all sectors (mo- 400 PJ of addressable demand in the region (assuming a uses across bility, industry, power, buildings) 1.5 degree scenario in line with the 2016 Paris agreement) mobility, industry, Most mature hydrogen initiatives in mobility First large local demand announcements include decarbon- power, (hydrogen busses and communal vehicles) and ization initiatives of Vattenfall, Kisuma, and SkyNRG and buildings) industry (green methanol production for use as industry feedstock in industry or transport e-fuel)

Needed in next 1 – 2 years Needed in next 2 – 3 years

Key mechanisms Exemption of RED II additionally and correlation Market scheme for end-users (e.g., volume mandates, needed requirement feed-in tariffs) Introduction of hydrogen scale-up funds and Acceleration of offshore wind development via support instrumentation early-on spatial planning and tendering (e.g., electrolyser tenders) End-to-end contracts and subsidies with government as Compensation of the initial investment gap for orchestrator critical infrastructure

Source: Working team analysis

40 Exhibit 13. The Northern Netherlands implementation plan

Timing Implemen- tation areas Key actions 2020 2021 2022 A Setting up work group by the Northern Netherlands Hydrogen Coalition to develop a Hydrogen timeline for rollingout hydrogen use cases, matching supply an demand to derisk production, investments, with actions including: infrastructure • Identifying priority hydrogen use-cases to develop by 2025 and demand • Identifying quick-win cost-effective use cases to be implemented in the short term • Forecasting aggregated hydrogen demand for expected use cases to match with supply, and orchestrating hydrogen purchase agreements to derisk investments

Realizing a Northern short- and long-term project pipeline: • Examining challenges and opportunities faced by the short- and long- term project pipeline • Identifying value chain initiatives, such as centralisation of supply and demand and purchase agreements • Outlining key areas to realize planned projects, such as the potential to support regulatory frameworks (e.g. RED II, trading credits, feed-in tariffs)

Inviting the national government representatives to join work groups, to realize financial investment decisions and immediate regulatory frameworks B Ensuring the offshore wind scale-up to support the scale-up of the entire Northern Offshore Netherlands hydrogen ecosystem, with actions including: wind capacity • Developing a minimal viable timeline of phased offshore wind expansions required to realize the region‘s 2030 hydrogen • Assessing regional grid requirements to identify any necesarry grid expansions for facilitating offshore wind expansions

Developing an offshore wind expansion road map in collaboration with the government over the next 6 to 12 months that provides systemic benefits to the Netherlands while realizing the Northern Netherlands hydrogen project pipeline C Creating a larger ecosystem supportive of the developments in hydrogen: Larger • Mapping of gas-related jobs that are likely to be phased out in the region hydrogen • Identifying jobs related to the hydrogen ecosystem, including their required skill sets ecosystem • Developing support mechanisms to boost the transformation of existing jobs, attract and develop new talent and createan attractive investment proposition for global hydrogen businesses

Orchestrating national job programs with Dutch governmental support to educate new talent or reskill existing talent

D Overall Setting-up a transformation and coordination office in the fall of 2020, led by the private program sector,with responsibilities including: management • Developing the short- and long-term strategy of the region • Identifying white spaces in the value chain • Connecting interdependencies in the pipeline

Orchestrating of project management, by the Transformation and Coordination, with actions including: • Putting in place project performance indicators • Organising frequent communication forums • Assigning key responsible stakeholder throughout the system

Creating cross-regional orchestration of ecoystem developments, by establishing a Dutch hydrogen road map With clear focus areas and cross-regional work group

Source: Northern Netherlands Hydrogen Coalition

41 APPENDIX LIST OF SOURCES

Ministry of Economic Affairs, NL: Klimaatakkoord, 2019

Northern Netherlands Hydrogen Coalition

European Commission: A hydrogen strategy for a climate-neutral Europe, 2020

IRENA: Hydrogen from renewable power, 2018

Hydrogen council: Path to hydrogen competitiveness: A cost perspective, 2020

McKinsey: Decarbonisation challenge for steel, 2020

FCHJU: Hydrogen roadmap Europe, 2019

The Dutch Government: Renewable energy: Offshore wind energy, 2020 https://www.government.nl/topics/renewable-energy/offshore-wind-energy

NLog: Assessment of underground energy storage potential to support the energy transition in the Netherlands, 2019

CE Delft: Werk door groene waterstof, 2018

BLIX Consulting: Offshore wind boven de Wadden, 2017

Northern Netherlands Hydrogen Coalition: Investment Agenda Hydrogen Northern Netherlands 2019

Provincie Groningen: Regionale Energie Strategie, 2020

Gasunie: European hydrogen backbone, 2020

Hydrogen council: Path to hydrogen competitiveness: A cost perspective, 2020. With additional assumptions from: • Coalition analysis • Planbureau voor de Leefomgeving: Klimaat- en Energieverkenning, 2019

University of Groningen: Future markets for renewable gases and hydrogen, 2019

University of Groningen: Outlook for a Dutch hydrogen market, 2019

42 CONTACT

NL [email protected]

EN [email protected]

43 PARTNERS OF THE INVESTMENT PLAN HYDROGEN NORTHERN NETHERLANDS

REFLEX BLUE PMS 355 C= 100 C= 94 M= 90 M= 0 Y= 0 Y= 100 K= 0 K= 0

Groningen Seaports

Hyzon Motors

Kisuma Chemicals ENGIE RÉFÉRENCES COULEUR logotype_solid_BLUE_RGB 14/04/2015 24, rue Salomon de Rothschild - 92288 Suresnes - FRANCE Tél. : +33 (0)1 57 32 87 00 / Fax : +33 (0)1 57 32 87 87 Zone de protection 1 Web : www.carrenoir.com R0 G170 B255 Zone de protection 2

Zone de protection 3

Gasunie Projecten Lauwersoog

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