Nineteen parties from the Northern Netherlands want to invest €2.8 billion in large-scale generated hydrogen over the next 12 years. This involves sustainable green hydrogen. From the State they ask for a subsidy with which part of the investments can be covered.

This is contained in the Hydrogen Investment Agenda for the Northern Netherlands, which was presented last week at the provincial government building in Groningen. Signatories to the agenda are nineteen companies and organizations, including Gasunie, Shell, Groningen Seaports, Nouryon, Engie, Eneco and the Province of Groningen. The nineteen organizations are all involved in the generation or application of hydrogen in some way.

A lot is already happening with hydrogen in the north. For example, the municipality of Groningen has hydrogen-powered vehicles running, a test of a hydrogen-powered train is coming, and several plants are being built to scale up hydrogen production. Together, Gasunie, Nouryon and Engie already have plans to build 120 megawatts of electrolysis capacity in the coming years. That capacity is to be divided between a 100-megawatt megafactory and a smaller one in Delfzijl.

Unprofitable

Despite the big plans, there is still an "unprofitable top" on the investments. Here the investment costs exceed the revenues. Until 2024, this averages 100 million euros per year. This is where the national government needs to step in. "We therefore ask the national government to set up an operating subsidy comparable to SDE+ for hydrogen production. This will have a positive effect on green chemistry and employment," the parties argue. With the SDE+ subsidy, entrepreneurs receive subsidies if they want to install solar panels on their business premises, for example.

The drafters of the investment agenda want a quick decision to invest in production sites. These are sites of 100 megawatts for green hydrogen and a production site for blue hydrogen. This location should have a capacity of 1.2 gigawatts.

Plea for Northern Netherlands

The agenda also makes a case for the Northern Netherlands location. There is space and knowledge in the region to convert electricity into hydrogen via electrolysis. The hydrogen can be stored in empty salt caverns in the province. Through the existing natural gas grid, the hydrogen can be transported relatively easily to other locations at home and abroad.

Green hydrogen in 2030

By the end of 2018, 27 parties were already advocating that the Netherlands should be able to generate at least 3 gigawatts of green hydrogen by 2030. This should be done throughout the country, with five industrial clusters along the coast and in Limburg playing a major role.

 

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