Gasunie on the importance of offshore hydrogen: ‘The energy infrastructure should be there ahead of demand’

Gasunie on the importance of offshore hydrogen: ‘The energy infrastructure should be there ahead of demand’

The development of offshore   hydrogen has been losing momentum this summer, as shown by the North Sea Wind Energy Infrastructure Plan. The Dutch government plans to use the coming months to reassess the future of offshore hydrogen demonstration projects. In September, the Climate and Energy Outlook will be published, which should provide clarity on how the initiative will proceed. Yet Werna Udding, offshore hydrogen manager at Gasunie, does not see this as a step back. ‘Hydrogen produced on land as well as offshore is essential for an efficient, sustainable and  future-proof energy system. Now more than ever, it’s important to maintain a long-term perspective and show leadership.’

Why are offshore developments slowing down?

‘There are headwinds on both the production side and the customer side. Costs for wind farm developers are high, while demand for electricity remains low. As a result, producers have no stable investment prospects. The industrial sector, as a future consumer of hydrogen and electricity, is reluctant to invest in reducing CO₂ emissions. As long as there is no clear and reliable policy from the government, companies will not take any major steps.  It’s disappointing that the government is now asking for ambitions to be scaled back, since you can see that the need remains high. And that is precisely why it’s important to maintain a long-term perspective.’

What is Gasunie doing now with regard to offshore developments?

‘We are retaining and sharing the knowledge we have built up. In addition, we’re continuing to talk with parties like TenneT and network operators  from other countries around the North Sea about how the hydrogen network and electricity cables can reinforce each other.  We are looking at where we can take preparatory steps.’

Why is that so important?

‘Because you can’t build a completely new energy system from scratch in just a few years. Long-term certainty is crucial for parties to be able to invest in production or purchase. Developing  our infrastructure also takes time and it must be completed before transport is needed. If we want to be able to transport hydrogen produced offshore by the end of the 2030s, we need to decide in the short term what the system will look like, how much hydrogen we will be transporting and where we can come ashore. Start-up and development take time, at least a decade, and we want to avoid future congestion. If you wait until everything is certain, you’ll be too late .’

What is the value of offshore hydrogen?

‘It’s crucial. The Netherlands is generating more and more wind power, especially offshore. That’s good news. But that energy is not always available when we need it and increasingly it’s available at times when we cannot use it properly. Hydrogen helps to store that renewable energy for later use. This will make the energy system more reliable and less sensitive to peaks and surpluses. Hydrogen production via electrolysis can take place both offshore and on land. By combining hydrogen and electricity, we can make the energy system more flexible and easier to manage. This involves creating more opportunities for energy transport and using the space on land efficiently. Hydrogen can help prevent grid congestion, thereby ensuring that the energy system as a whole functions properly. In addition, hydrogen offers a strategic advantage since it makes the best use of the energy produced. It is a proprietary green energy source that benefits both the Netherlands and our neighbouring countries. This will make us more independent in our energy supply.’

So is hydrogen the solution?

‘It’s not the only one, but it’s certainly an important one. Especially for storing energy to use later. It provides energy that is available for industry and heavy transport when they need it. Essentially, it’s about ensuring that we have options in the near future. And to do that, we need to lay the foundations now.’

What does Gasunie expect from the government?

‘I think the market needs clarity and a comprehensive vision. We have set climate targets together, and we need to have a long-term vision of how we are going to achieve them in the best way for the Netherlands. If we want to achieve our goals, we need to know where we stand. What is the outlook? Where will there be flexibility? What does the division of roles look like? If we don’t produce it ourselves, where does it come from? It is understandable that people are now thinking about the pace. But to avoid losing any options, we must continue to focus on the long-term outlook and the development that is needed  to achieve it. The upcoming elections offer a chance to reassess that direction and reaffirm it.’

What will be needed to move forward together?

‘Understanding. And trust. Building the hydrogen chain is new and that makes it challenging, especially as part of an energy system in which electrons and molecules reinforce each other as much as possible. We will have to do that together. Our commitment is that the market can rely on our infrastructure when it needs it. That is precisely why we must take a step forward now and why these investments are necessary to ensure that we will have clean and affordable energy. We are building something that will not be ready tomorrow but will be desperately needed 20 years from now. We must continue to realise that.’

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