Danish company Ørsted will have to compete with the consortium CrossWind consisting of Shell and Eneco for subsidy-free construction of the Hollandse Kust Noord (HKN) offshore wind project (760 MW). Shell and Eneco announced their participation in the bid yesterday. The winner of the bid will be announced within 3 months time.
What is radically new in the world of offshore tenders is that both Ørsted and CrossWind hint at their readiness to invest in electrolysis capacity as well, as part of the overall bid, even if this technology is not yet profitable. The wind park builders recognize that in the long term it is no longer sufficient to throw intermittent electricity on the market, it needs to be buffered as well. Enter the hydrogen economy, officially backed by the Dutch government.
From the Shell announcement:
Shell and Eneco are participating in the tender for Hollandse Kust (noord) through their joint venture CrossWind… Together with the large-scale development of offshore wind projects comes the challenge of intermittency in wind generation. That is why CrossWind will invest in various innovations that can be implemented at full-scale in future wind farms to help balance the electricity network and keep societal costs low… If the current plan will materialise, the hydrogen plant on the Tweede Maasvlakte will be built on a site especially designated by the Port of Rotterdam (2 GW conversion park) with Shell as the launching customer. In this plant, green hydrogen will be produced through electrolysis… The hydrogen plant will have a capacity of around 200 MW… Shell intends to start operations by 2023 to produce about 50,000 – 60,000 kg of hydrogen per day. The green hydrogen produced will initially be used at the Shell refinery in Pernis to partially decarbonise the production of fossil fuels. This saves a minimum of 200,000 tonnes of CO2 per year. It is important that as of 2023 there is enough green hydrogen available, which can be used to decarbonise trucks in the transport sector directly. This way, approximately 2,300 hydrogen trucks per day could run on this volume of green hydrogen as the market for trucks on hydrogen further develops… Through the connection of this wind farm to our possible future green hydrogen plant in the Port of Rotterdam, we want to develop a new value chain together with our partners and governments – from wind to hydrogen – to create a green hydrogen hub. We regard this as a stepping stone for the recently announced NortH2-project. These projects fit well with our aspirations to provide more and cleaner energy to our customers”… The green hydrogen plant that Shell wants to realise fits perfectly in the role that the port of Rotterdam envisions for itself to build a public hydrogen network in the port area. “Shell’s announcement is now accelerating our plans for the construction of a hydrogen pipeline for the Rotterdam industry,” says Allard Castelein, CEO of the Port of Rotterdam Authority. “With projects like this, we are jointly building a sustainable port and industry. This is important for the future of the port and therefore for the earning power of the Netherlands.”
Shell just kicked of the Dutch hydrogen economy for real.
[windenergie-magazine.nl] – Shell and Eneco join forces for HKN
[nieuwsbladtransport.nl] – Shell wil waterstoffabriek op Maasvlakte bouwen
[shell.nl] – Plan for wind to power Rotterdam hydrogen plant
[deepresource] – The Emerging Dutch Hydrogen Economy