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RWE and Neptune Energy Join Forces to Accelerate Green Hydrogen Production in Dutch North Sea

By February 15, 2022 6   min read  (1058 words)

February 15, 2022 |

Fuel Cells Works, RWE and Neptune Energy Join Forces to Accelerate Green Hydrogen Production in Dutch North Sea
  • H2 opZee demonstration project with 300 to 500 Megawatts electrolyser capacity combined with existing pipeline to be evaluated in a feasibility study
  • Project to support ramp-up of hydrogen economy in the Netherlands and Dutch energy transition

RWE and Neptune Energy announced today that they have signed a Joint Development Agreement to develop the offshore green hydrogen demonstration project “H 2opZee” ahead of 2030.

H2opZee is a demonstration project which aims at building 300 to 500 megawatts (MW) electrolyzer capacity far out in the Dutch North Sea, in order to produce green hydrogen by using offshore wind. The hydrogen will then be transported to land through an existing pipeline. The pipeline has a capacity of 10 to 12 gigawatts (GW), so it is already suitable for the further roll-out of green hydrogen production to gigawatt scale in the North Sea. The intention is to start the feasibility study in the second quarter 2022. The project is an initiative of TKI Wind op Zee, an initiative supported by the Dutch government that brings people, knowledge and financing together to realize the offshore energy transition.

H2opZee consists of two phases: In the first phase, a feasibility study will be carried out and an accessible knowledge platform set up. The objective of this is to start the roll-out of hydrogen at sea in the Netherlands. In the second phase, the project will actually be implemented. For that phase, a tender methodology has yet to be defined.

Sven Utermöhlen, CEO Offshore Wind, RWE Renewables: “Hydrogen is a gamechanger in the decarbonisation of energy-intensive sectors, and H2opZee is among the world’s first projects of this kind and scale. With Neptune Energy at our side, we want to develop the H 2opZee project to demonstrate how offshore wind can be an ideal partner for the production of green hydrogen at scale, and to explore the best approaches to system integration. As RWE, we have a 20 years’ track record in offshore wind and have the hydrogen expertise along the entire value chain under one roof. We are convinced that learnings from the H 2opZee demonstration project will help in ramping-up the hydrogen economy in the Netherlands, as it presents an important step towards the roll-out of large-scale green hydrogen production offshore.”

Lex de Groot, Managing Director of Neptune Energy in the Netherlands: “We see an important role for green hydrogen in the future energy supply. It can be produced in our own North Sea. The energy transition can be faster, cheaper and cleaner if we integrate existing gas infrastructure into new systems. This infrastructure is technically suitable. As a result, for example, no new pipeline at sea is needed and no new landfall needs to be made through the coastal area. With the PosHYdon pilot we are one of the leaders in this field of offshore energy system integration and reuse. The lessons learned from this project apply to H 2opZee. The faster we can scale up green hydrogen at sea, the faster industry such as chemicals and steel production can become more sustainable. With H 2opZee the Netherlands is becoming a world leader in this area. That is why we, together with RWE, are enthusiastic about H 2opZee and what it has to offer the Netherlands.”

About H2 opZee

H2opZee is to realise 300 to 500 MW additional green hydrogen offshore capacity combined with an existing pipeline that can facilitate 10 to 12 GW in the future. The project is among the world’s first of this kind and scale. The gained knowledge and expertise will strengthen the competitive position of Dutch industry, help to establish the value chain of offshore wind and green hydrogen production in the Netherlands, and will deliver technology and knowledge that can be exported worldwide.

H2opZee is one of the 37 proposals submitted for the second round of the National Growth Fund. Consortium partners RWE and Neptune Energy have worked together on the initiative from the very beginning. While the core consortium of H 2opZee has been kept small and decisive, knowledge will be shared with the industry and nearly 40 organizations have already signaled their support.

RWE

RWE is leading the way to a green energy world. With an extensive investment and growth strategy, the company will expand its powerful, green generation capacity to 50 gigawatts internationally by 2030. RWE is investing €50 billion gross for this purpose in this decade. The portfolio is based on offshore and onshore wind, solar, hydrogen, batteries, biomass and gas.

RWE Supply & Trading provides tailored energy solutions for large customers. RWE has locations in the attractive markets of Europe, North America and the Asia-Pacific region. The company is responsibly phasing out nuclear energy and coal. Government- mandated phaseout roadmaps have been defined for both of these energy sources. RWE employs around 19,000 people worldwide and has a clear target: to get to net zero by 2040. On its way there, the company has set itself ambitious targets for all activities that cause greenhouse gas emissions. The Science Based Targets initiative has confirmed that these emission reduction targets are in line with the Paris Agreement. Very much in the spirit of the company’s purpose: Our energy for a sustainable life.

Further information on RWE’s hydrogen activities at https://www.rwe.com/en/our-portfolio/innovation-and- technology/hydrogen/? .

About Neptune Energy

Neptune Energy is an independent global E&P company with operations in the North Sea, North Africa and Asia Pacific. In 2020 the company produced 142,000 net barrels of oil equivalent per day and on 31 December 2020 holds 2P reserves of 601 million barrels of oil equivalent. The company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.

Neptune Energy Netherlands is the largest offshore gas producer in the Dutch sector of the North Sea.

About TKI Wind op Zee

TKI Wind Op Zee brings people, knowledge and financing together to realise the offshore energy transition. To this end, TKI Wind op Zee facilitates research, development, demonstration, valorisation, knowledge transfer, (international) collaboration, education and market development in order to maximize the cost reduction and economic impact of offshore energy. The TKI Offshore Wind Innovation Program aims to make a major contribution to the energy transition by supporting research and innovation that make offshore energy generation reliable, affordable and well-integrated into the environment and the energy system.

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