TOKYO — Japanese trading house Mitsubishi Corp. looks to invest over 100 billion yen ($690 million) to build one of the world’s largest “green” hydrogen production plants in the Netherlands.
Green hydrogen is produced by electrolysis of water using electricity derived from renewable energy, meaning carbon dioxide is not emitted during the process. It carries great potential as a next-generation, carbon-free fuel source.
Mitsubishi plans to refine the know-how for commercialization — in areas like production and supply — in Europe, which leads the way in green hydrogen development, and use it to expand globally.
Production will be handled by Eneco Diamond Hydrogen, a joint venture between Mitsubishi and the trading house’s subsidiary Eneco, a major Dutch renewable energy company. Construction of an electrolysis plant will begin in 2026, with plans to start producing hydrogen in 2029.
The plant’s envisioned capacity of 80,000 tonnes annually would be nearly 30 times greater than that of the world’s largest facility now in operation.
Eneco has a large offshore wind farm in the Netherlands, electricity from which will be used to produce the hydrogen. The company plans to sell the hydrogen through its retail electricity sales network and supply it to manufacturing and power businesses in Europe using pipelines.
Most current hydrogen production uses electricity derived from fossil fuels like natural gas. Cost has been a major hurdle to widespread adoption of green hydrogen.
Producing green hydrogen costs 3 euros to 8 euros ($3.28 to $8.74) per kilogram, higher than the 1 to 2 euros per kg for fossil fuel-derived hydrogen, consulting firm PwC reports. Mitsubishi aims to reduce costs through mass production.
The European Union looks to increase its annual capacity for green hydrogen to 10 million tonnes by 2030.
Other Japanese companies like Asahi Kasei are active in hydrogen development and have advanced technologies. Mitsubishi’s development of production and supply know-how may spark further activity among domestic businesses.
Trading house Itochu and Osaka Gas will invest in Danish hydrogen developer Everfuel this spring and participate in a project to produce 3,000 tonnes of green hydrogen per year in Denmark.
Oil company Eneos and trading house Sumitomo Corp. are working with Malaysian businesses to produce green hydrogen derived from hydropower in Malaysia by 2030.
SOURCE: NIKKEI Asia
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