Chemelot remains adamant: green hydrogen is necessary for decarbonisation
News article
Hydrogen has been a crucial feedstock at Chemelot for years. Even though large quantities of hydrogen are already being produced and used, the supply of renewable hydrogen is still minimal. The connection to wholly-owned Gasunie subsidiary Hynetwork’s national hydrogen network will not be realised until 2032 at the earliest. This is rather late according to Chemelot’s Rico Luijten, who is trying to close the hydrogen supply chain loop at the chemical site. A discussion about patience, urgency and careful optimism.
What is Chemelot’s role in developing the hydrogen economy at the site?
‘Hydrogen is already a key feedstock here. It is released while cracking naphtha and natural gas, both of which are fossil fuels. A sustainable alternative will have to be found for this grey hydrogen or the products produced from it, such as ammonia. I am Hynetwork’s point of contact at Chemelot Business Development. Internally I liaise with companies at the site on both the demand and the supply side. We’re also working on the Hydra project to build our own hydrogen network at the Chemelot site as a connection between Hynetwork’s hydrogen network and customers. We’ve already completed a feasibility study for this.’
How high is demand expected to be for green hydrogen at Chemelot?
‘A study from 2024 shows that we’ll be needing around 600 megawatts of electrolysis capacity around 2030 to meet demand (this is three times the capacity of Shell’s Holland Hydrogen 1 in Rotterdam, currently Europe’s largest electrolyser - Ed.). Demand will rise to between 1 and 1.5 gigawatts in 2035, and to 2 gigawatts in 2040. We’re currently working on an update to this study, as quite a lot of uncertainty has arisen in the industry over the past few years. Hynetwork will also need an updated demand estimate for the design of the pipeline and the receiving station.’
Has demand dropped?
‘We still expect demand to be there and supply to come, but it won’t actually materialise until the required infrastructure has actually been built. Uncertainty is high at the moment, as all the circular hydrogen produced at the cluster also has to be used here and no circular alternative is available during production downtime as long as there is no connection to Hynetwork. The hydrogen network should eliminate those risks. Do note, however, that the industrial parties at Chemelot are currently mainly focusing on survival, and less so on how they will be decarbonising in 2032. The hydrogen market will have to be kickstarted and we’re getting on with that.’
How are things on the supply side? Are there any parties at Chemelot that want to produce sustainable hydrogen?
‘RWE wants to start producing circular hydrogen from waste streams with the FUREC project. Envalior is also looking at producing 2 to 3 kilotonnes per year itself using an electrolyser. However, final investment decisions are yet to be made.’
FUREC’s project is about circular hydrogen – does that count as green?
‘Not automatically, according to current European regulations. It partly depends on the sales market. We’re fighting hard to get the right qualification, and things are moving in the right direction.’
Can local production start sooner than the connection to the national network?
‘We already have local production and hydrogen infrastructure on-site. However, the connection to the national hydrogen network does remain a prerequisite for increasing volumes from projects and for other future plans at Chemelot.’
When will Chemelot be connected to Hynetwork’s hydrogen network?
‘Hynetwork’s most recent schedule says 2032. We want to be connected as soon as possible, preferably before 2032. We’re discussing this with Gasunie and the Ministry of Economic Affairs and Climate.’
How much inconvenience will the construction of the hydrogen pipeline cause for local communities?
‘Not so much. It mainly involves repurposing existing natural gas pipes. In the province of Limburg, we’ll only need 16km of new pipeline in the Ravenstein – Schinnen section, for the part underneath Roermond. For now, the hydrogen pipeline will end in Schinnen and the Chemelot branch will be made near Geleen. For this new branch, two sections of about 3km are still being studied.’
How do you see your collaboration with Hynetwork?
‘The collaboration with Hynetwork is very constructive. They really help us think in terms of what’s possible. At Hynetwork, Chemelot is now also seen as an important party for transporting hydrogen abroad. That is exactly our ambition as well. On a critical note, however, the government has been saying for years that we need to push things to the limit together to accelerate the construction of infrastructures. We’re not really seeing that. In practice, no shortcuts are being taken in the procedures. Every possible risk is still being avoided, although we do need that to accelerate the plans.’
Does Chemelot have any alternative supply routes for hydrogen, via Belgium or Germany for example?
‘Not really. We are in discussion with Fluxys, the Belgian network operator. They have plans for both hydrogen and CO2 transport to Germany, but those won’t be completed any faster than Hynetwork. The connection to Germany is interesting as a destination: Chemelot could become a transit point for hydrogen towards German industrial clusters.’
Is blue hydrogen a solution for Chemelot, as long as affordable renewable hydrogen remains unavailable?
'Yes, it is. Blue hydrogen (produced from natural gas, with the CO2 being captured and stored - Ed.) is increasingly being accepted as a temporary solution. In fact, we need it very much to bridge the next 10 to 15 years. We’re talking to a party that wants to start producing blue hydrogen in Rotterdam. They are looking for commitment from customers. Another solution would be to start capturing CO2 ourselves at Chemelot and transporting it to the Aramis project in Rotterdam for storage underneath the North Sea.’
What is the biggest threat to the hydrogen economy at Chemelot?
‘The biggest threat is a lack of commitment from the parties involved. The feasibility study for our own Hydra network is finished, but there are no follow-up steps. Uncertainties are too high and support among companies at the Chemelot site is currently insufficient, partly due to the geopolitical situation and their own competitiveness, which is under pressure in Europe. As long as there is no national infrastructure and the right preconditions have not been created for the longer term, no investment decisions will be made for the production of renewable hydrogen. This makes it difficult to take any further steps.’
And the biggest accelerator?
‘Hynetwork is offering a tangible solution to the risks relating to circular hydrogen production and the construction of a syngas platform at the site. This strengthens the confidence of other parties and gives us a basis for further developing hydrogen at Chemelot. We remain adamant that we need renewable hydrogen to decarbonise the site. We’re hoping for 2031, which means that an acceleration is required and that we can’t afford any more delays.’
Rico Luijten works for USG Industrial Utilities (USG) and Stichting Chemelot. He coordinates the hydrogen strategy at the chemical site in Geleen, including the connection to Hynetwork’s national hydrogen network.