Offshore hydrogen

The rapid growth of solar and wind energy is causing peaks and troughs in the electricity supply. This is leading to increasingly frequent grid congestion, in which the electricity grid is unable to transport the electricity. Large amounts of electricity are required to produce hydrogen through electrolysis. Placing electrolysers in strategic locations where there is a lot of renewable energy generation relieves the burden on the electricity grid. The hydrogen produced serves as a flexible energy carrier and can later be converted into electricity. This ensures that no valuable energy is lost.

Grid congestion occurs when the electricity grid does not have enough capacity to accommodate peaks in supply or demand. Such congestion can be temporary or long term. If there is long-term grid congestion, this can lead to projects being delayed, data centres and businesses not getting new connections, and sustainable energy generation being scaled back. The Ministry of Economic Affairs and Climate Policy warns that this could slow down economic growth and the energy transition.

When there is a lot of sun or wind, excess electricity can be converted into hydrogen. This hydrogen can be stored and used days, weeks, or even seasons later, for example as fuel for industries or power stations. Despite some conversion losses, more value is retained than if the energy were simply lost.

For industries with limited electrical infrastructure, hydrogen can be a viable alternative for making processes more sustainable in the short term. It can also be mixed with natural gas up to approximately 30 percent without the need to make major changes to existing facilities. This makes the transition to a cleaner system easier and more affordable.

Offshore wind farms can convert electricity directly into hydrogen, which is then transported to land via pipelines. This avoids the need to transport all this electricity via the existing grid, thereby limiting grid congestion and unnecessary grid reinforcement. It also reduces infrastructure costs and seeks to minimise social costs. In this way, the Netherlands makes the most of its strategic location by the sea and its wind capacity.

Green hydrogen is more expensive than natural gas, but its value lies in its flexibility in a variable renewable energy generation pattern, the ability to store renewable electricity and the prevention of curtailment (the shutdown of wind or solar farms). This helps provide a high level of supply security ( availability of energy when there is demand), affordability (preventing curtailment and balancing the energy system), and reliability (preventing parts of the energy system from failing). System integration (offshore/onshore) also reduces the need for expensive grid reinforcement and keeps social costs low.

Gasunie is working on a robust, nationwide hydrogen network and is in favour of integrated infrastructure planning in which electricity, methane and hydrogen complement each other. Existing gas pipelines will be reused wherever possible. This approach is in line with national plans such as the National Plan for the Energy System (NPE) and the Integrated Infrastructure Outlook for 2030-2050. In other words, Gasunie is developing an infrastructure for today and tomorrow.