The Green Hydrogen Economy in the Northern Netherlands The Green Hydrogen Economy in the Northern Netherlands Noordelijke Innovation Board The Green Hydrogen Economy in the Northern Netherlands Table of Contents Preface 2 Infrastructure: Hydrogen harbor facilities Assessment prepared by Rabobank on 3 Green hydrogen in Eemshaven 45 May 5, 2017 of the financial viability of About NIB 2 production, markets, large-scale green hydrogen production in Infrastructure: 5 hydrogen distribution the Northern Netherlands 69 Approach and process 2 infrastructure and centers 47 society 18 Financial business case seems supported Next steps 3 Infrastructure: Hydrogen storage in salt by underlying trends 69 Production: 4,000 MW of offshore wind caverns 48 energy 21 Initial financing considerations 70 Society: Zero emission public 1 Why green hydrogen? 4 Production: 1,000 MW electrolysis transportation 50 Financial model output and conclusions 71 hydrogen production 23 Transporting large-scale, cheap, Society: Hydrogen trade fair and Appendix: Assumptions used in the renewable electricity production 5 Production: 1,000 MW biomass exhibition 52 financial model 72 gasification 26 Empowering the transition to a Society: Hydrogen regulatory framework 53 sustainable energy supply 8 Future production: Far offshore wind farm hydrogen production 27 Society: Green hydrogen certificates 54 6 Impact of gas production reduction on Production: 100 solar-hydrogen smart Society: Hydrogen safety issues and the economy 74 2 Green hydrogen: a areas (cities, villages, islands) 28 standards 55 unique opportunity Production: Hydrogen from natural gas Summary 75 for the Northern with CCS in Norway 29 Netherlands 10 Roadmap for the green Markets: 300,000 tons of green methanol 4 Increasing renewable energy and and 300,000 tons of green ammonia 30 hydrogen economy and 7 How to organize the electricity production 12 investments 56 next steps 78 Markets: Delfzijl chemical industrial site 31 Established gas industry and More than green hydrogen: Summary 79 infrastructure 14 Markets: Emmtec chemical industrial site 32 A green energy system 57 Introduction: Report prepared by Relevant chemical and agricultural Markets: Nuon Magnum power plant Green hydrogen production and Accenture on February 24, 2017 82 sectors 14 fueled by green ammonia-hydrogen 33 consumption up to 2030 59 Business rationale 82 Rapid development towards clean Markets: 100 hydrogen fueling stations in Roadmap for the green hydrogen mobility 15 the Northern Netherlands 34 economy in the Northern Netherlands Case for the Northern Netherlands 83 up to 2030 61 Local green energy production and How to get started with hydrogen fueling Moving forward 83 balancing offers opportunities for stations 36 High level roadmap for the green everybody 16 hydrogen economy in the Northern High level roadmap 84 Markets: 5 green hydrogen fuel cell Netherlands up to 2030 62 Green hydrogen for heating buildings 16 balanced data centers 37 Success factors and dependencies 86 Investments for the green hydrogen Urgency for change in the Northern Markets: Hydrogen innovation/startup economy in the Netherlands up to 2030 64 Masterplan phase (2017-2018) 88 Netherlands 17 centers 38 Ideation, formation and mobilization Markets: 10 villages heated by green (ends mid-2017) 91 hydrogen 39 5 Green hydrogen Infrastructure: Hydrogen pipeline to production cost Colophon 92 Rotterdam, Limburg and Germany 42 calculations 66 Infrastructure: Hydrogen trading platform 44 Summary 67 2 Noordelijke Innovation Board The Green Hydrogen Economy in the Northern Netherlands 3 Preface This vision document for a green hydrogen economy in the Northern largest gas fields in Europe. The Slochteren field has been This full report describes production projects, markets, in production since the early 1960s and has contributed infrastructure and societal issues that will contribute to the Netherlands is the result of a collaborative process among industry, considerably to economic growth and employment in the development of a green hydrogen economy in the Northern governments and organizations, initiated and led by members of the Northern Netherlands. In addition to this, the Eemshaven has Netherlands. However, the green hydrogen economy is not a Northern Netherlands Innovation Board (NIB), in particular prof. Ad van Wijk developed into an energy harbor, which has large coal-fired fixed and well-defined concept; therefore, this report is a living power plants as well as gas and electricity connections to document. New projects and systems have been proposed since (member of NIB for energy transition) and Denisa Kasová (director of NIB). Norway. However, there is a need to make changes toward the publication of the summary, such as hydrogen storage in salt The process began on April 1, 2016, the same day that NIB itself started. a carbon-free energy system. Natural gas production will be caverns, hydrogen production from imported natural gas from Many companies, institutions and governmental organizations were consulted reduced in the coming years, which means that fossil fuel-based Norway and carbon dioxide storage in empty Norwegian oil/ power plants must considerably reduce their carbon footprint. gas fields, as well as a market for green hydrogen use in heating early on, and based on these consultations, prof. van Wijk developed the homes and buildings, especially in rural areas, villages and older initial ideas for a green hydrogen economy in the Northern Netherlands. After consulting with a wide range of companies, governments areas of cities. It is useful to consider this report as a first edition and organizations in the second quarter of 2016, the idea for in an ongoing process toward the development and realization the development of a green hydrogen economy as a successor of a green hydrogen economy in the Northern Netherlands. to the gas economy in the Northern Netherlands was born. About NIB In August 2016, prof. van Wijk outlined the initial contours of what such a green hydrogen economy would look like and Next steps Accelerating the economic growth of the Northern Netherlands education institutions and universities of applied sciences and defined the questions and issues that needed to be addressed is the greatest and most important ambition of the Northern research in the north. along the way. It became clear that the realization of a green This report shows that green hydrogen will facilitate the Netherlands Innovation Board, a collaboration among the hydrogen economy would require an integrated approach energy transition for chemistry, transportation, electricity and northern entrepreneurs, governments and academic institutions Accelerating economic growth and employment in the Northern for the development of green hydrogen production, markets, heating. It is necessary not only for the realization of the Paris who created the Northern Innovation Agenda in 2014. NIB Netherlands is challenging, as can be seen in the facts and infrastructure, the regulatory framework and other societal climate goals, but also for making the economy of the Northern is tasked with implementing and updating this agenda with figures table below, and there is a clear need for new ideas, aspects. Netherlands greener and stronger. the goal of expediting economic growth in the Northern and vision for a green, clean and innovative economy in the Netherlands. This includes yielding a greater return from the Northern Netherlands. Two important gatherings in September and December of 2016 The Northern Netherlands is uniquely positioned to develop energy, water, food/agro, health and industry ecosystems. and a series of one-on-one meetings provided valuable input one of the first green hydrogen economies in Europe. The Entrepreneurs have been tasked with taking the lead in this while developing a vision and roadmap for a green hydrogen main features which create these conditions are large-scale endeavor by sharing their vision, initiating collaborations and Approach and process economy, including production, markets, infrastructure green electricity production and importation, a large-scale stimulating development. Our board consists of entrepreneurs, and societal aspects. A work group composed of members chemical industry, gas expertise and, above all, a gas pipeline representatives of the three northern Dutch provinces, the four The Northern Netherlands has a strong position in energy representing NIB, Gasunie, NWP (H2 Platform) and the province infrastructure originating in the Norther Netherlands which can largest northern cities and all of the vocational and secondary production. The Groningen/Slochteren gas field is one of the of Groningen actively contributed to the development of this easily, quickly and cheaply be converted to transport hydrogen. vision and roadmap. Once the projects were defined, a roadmap and initial costs and investment estimates were provided by A high level roadmap has been developed in conjunction with Rabobank, ING’s Economics Department and Accenture. ING’s companies, government and organizations. This roadmap 2010 2011 2012 2013 2014 2015 2016 Economics Department analyzed the effect of decreases in will have to be implemented through a collaborative, well- gas production on the economy of the Northern Netherlands. coordinated and tightly directed effort by companies, Population Rabobank prepared an initial financial model to assess the governments and educational institutions. Companies Groningen 576,668 579,036 580,875 581,705 582,728