THE NORTHERN NETHERLANDS HYDROGEN INVESTMENT PLAN 2020 EXPANDING THE NORTHERN NETHERLANDS HYDROGEN VALLEY October 2020 TABLE OF CONTENTS Preface 3 Executive summary 4 01 An attractive opportunity for the Netherlands 6 02 A unique position for the Northern Netherlands 14 03 A blueprint for the rest of Europe 20 04 A road map to 2030 24 05 Support needed – ten actions 28 06 Implementation plan for the next 18 months 32 Appendix 36 TABLE OF CONTENTS 2 PREFACE Over the past several years, the Northern tem. To highlight the ambitious nature of the the European gas industry, the Netherlands is Netherlands has accelerated its hydrogen Northern Netherlands, one goal of the region favourably positioned to build on its heritage project pipeline together with its ambitions is to have offshore hydrogen production by of natural gas excellence to accelerate hy- of becoming the leading European hydro- 2030. Whereas the project pipeline in the 2019 drogen development and lead this emerging gen ecosystem. The Northern Netherlands Investment Agenda was worth EUR 2.8 billion industry. A leading Dutch hydrogen industry has received recognition from the Fuel Cells in total, all investments in this 2020 Investment has the potential to attract global businesses, and Hydrogen Joint Undertaking (FCH Plan amount to over EUR 9 billion. investments, and talent – it would provide the JU)¹ Hydro gen Valley grant as the leading Netherlands with the opportunity of securing European Hydrogen Valley developing a In the buildup of a hydrogen ecosystem like 66,000 existing recurring FTEs (e.g., in gas in- full-fledged green hydrogen value chain, this, the region faces technical and economic frastructure, mobility), attracting 41,000 new and is highlighted as a target region for the challenges, and also needs to address societal recurring FTEs (e.g., in maintenance, opera- European Just Transition Fund. Furthermore, acceptance. The Northern Netherlands Hydro- tions), and up to 104,000 new one-off FTEs by global businesses (e.g., Engie, Equinor, RWE, gen Investment Plan supports this next phase 2050.The benefits will be shared by the whole Shell, and Vattenfall) have increasingly com- with the provision of a concrete road map, a of the Netherlands and northwestern Europe. mitted to the Northern Netherlands as their set of requirements, and an implementation This is not something the Northern Nether- hydrogen ecosystem of choice, and regional plan to realize Dutch hydrogen potential. lands could (or should) pull off by itself. Such governments have increased their commit- efforts can only lead to results if coupled with ments to realize the Northern Netherlands Hydrogen is an attractive emerging industry: those of other regions, like Germany, Belgium hydrogen ecosystem. Close collaboration with green and blue hydrogen are needed to meet and the EU as a whole. In that regard, we look surrounding countries will add to the region’s Dutch and global climate targets as feedstock upon the tremendous attention to and push development. This increased momentum has and fuel, especially in hard-to-abate sectors for green hydrogen by many of the relevant brought about the next phase in the realization of (e.g., industry, heavy-duty transportation), actors with whom the Northern Netherlands the Dutch hydrogen opportunity, moving from while bringing about improved air quality and gladly continues to cooperate. pilots and demos to maturing and scaling up the abatement of other pollutants like nitrogen the Northern Netherlands hydrogen ecosys- oxides and particulate matter. As the leader in “The Northern Netherlands is on its way to “The plans in the Northern Netherlands are making the Hydrogen Valley a reality. The unique and promote ‘a massive increase’ activities in the region will bring the cost of of electrolyzer production. In this way, the renewable hydrogen down. This will pave Investment Plan highly contributes to the the way for large-scale deployment in the EU European 2x40GW green hydrogen initiative and thus contribute to achieving the climate and should be the starting point for the targets. It really is 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 realizing import and large-scale for developing the hydrogen value chain European green hydrogen market.” export facilities. If you ask me, the region is including large-scale electrolysis.” actually quite modest with this plan.” —Roger Miesen, —Michele Azalbert, RWE —Ad van Wijk, Engie Professor of Future Energy Systems 1 A European public–private partnership to support the deployment of fuel cell and hydrogen technologies 3 PREFACE EXECUTIVE SUMMARY The Northern Netherlands has a unique opportunity to cost-effectively develop an inte- grated hydrogen ecosystem, to become a game-changer in global hydrogen develop- ment, and to accelerate Dutch hydrogen momentum. In addition to this 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 ing offshore wind and grid expansions, which markets, with over 400 PJ per annum require large investments by themselves and of addressable northwestern European are essential for the hydrogen ecosystem to be (Benelux, western Germany, northern developed). France) demand (30 GW hydrogen equiv- alent) being expected by 2030 when con- The Northern Netherlands has been rec- sidering the 2016 Paris Agreement’s 1.5 ognized as the leading Hydrogen Valley in degree C. scenario. Europe. Building on this current momen- tum, recognition, and ambition level, the ii. Large offshore wind potential north of the region aspires to remain the leading European Northern Netherlands, with available space hydrogen ecosystem beyond 2030, covering for over 20 GW, of which 4 to 6 GW of the entire hydrogen value chain, including hydrogen-dedicated wind is required by offshore wind (at least 4 to 6 GW), hydrogen 2030. production (50 to 75 PJ per annum of green hydrogen production), transport (1,150 km of iii. Strategic locations for hydrogen produc- connected northwestern European hydrogen tion at industrial hubs (Delfzijl, Eemshaven, 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 in northwestern gically located ports. Europe. Beyond 2030, when the European hydrogen ecosystem is fully developed, the v. Knowledge on gas and hydrogen trading, Northern Netherlands will be the global center transport, and innovation, which builds of hydrogen infrastructure and expertise, on the Dutch position as the European renewing its role as a leading “gas roundabout” leader in natural gas excellence and and market hub for green fuels, manufacturing ongoing hydrogen projects. excellence, knowledge, and innovation. The Northern Netherlands also has a systemic To realize the Northern Netherlands‘ ambition approach in place to create integrated self- in a systemic way, a road map has been imple- sustaining value chains for end uses that can mented with two phases: form the blueprint for the rest of Europe. Furthermore, the existing project pipeline pro- Phase 1: Maturing and scaling (2020 to vides the momentum needed to mature and 2025). From now until 2025, the Northern scale up the Northern Netherlands hydrogen Netherlands will mature and scale up to be- ecosystem in the coming decade, under- tween 5 to 10 PJ of hydrogen capacity per pinned by more than 50 projects in the value annum, with various projects in place across chain in (production, transport, and storage) and the value chain, from production (Eemshy- end uses (in industry, transportation, power, and drogen, DJEWELS 1 and 2, HyNetherlands buildings), with over EUR 9 billion in planned Phase 1, GZI Next Emmen) and infrastructure direct hydrogen-related investments (exclud- (Northern Netherlands hydrogen backbone 4 and HyStock storage) to use cases (BioMCN, larger hydrogen ecosystem (Actions 6 and 7), Assigning the majority of the allocated Just Holthausen, Magnum Power Station, SkyNRG, and (D) overall program management (Actions Transition Fund budget to the Northern Hydrogen Hoogeveen, HEAVENN). Over EUR 8 to 10). The ten actions are as follows: Netherlands to support with the relevant 850 million in investments will be required to investments needed to expand the Northern realize these projects. Apart from these private 1. Ensuring a supporting regulatory frame- Netherlands Hydrogen Valley. investments, additional regulatory and finan- work by being exempted from the Energy cial commitments are needed to ensure timely Directive