Hydrogen in the energy system

Hydrogen is mainly used in concentrated industrial areas, such as the port and industrial clusters in Rotterdam and Zeeland. In these regions, hydrogen is an indispensable feedstock and process material for various industrial applications.

Hydrogen is used in the production of chemicals such as methanol and other basic raw materials. These materials are the building blocks for a wide range of products, including plastics, solvents, adhesives, coatings and synthetic materials. Hydrogen is necessary to produce these materials.

Refineries use hydrogen to process and purify petroleum products. It helps remove sulphur and other undesirable substances from oil. Hydrogen also prepares oil products for further processing into fuels or chemical products. Without hydrogen, this would not be possible on a large scale.

Hydrogen is an essential raw material for the production of ammonia. Ammonia is used in products such as fertiliser and therefore plays an important role in agriculture and food production. Large-scale production of ammonia takes place in industrial areas and requires large volumes of hydrogen.

Much of the hydrogen currently used by businesses is grey hydrogen, which is produced from natural gas. This production process releases CO₂, which is often emitted into the atmosphere.

That is why efforts are being made in the Netherlands to find ways to limit these emissions so long as natural gas is still used as a feedstock. One example of this is the capture and storage of CO₂. In the Port of Rotterdam, the Port of Rotterdam Authority, Gasunie and EBN are partnering on Porthos, a project for transporting and storing CO₂ beneath the North Sea. The hydrogen production process would not change, but the CO₂ it releases would be captured and stored.

Another approach would be to switch to sustainable production. Hydrogen would then be produced using electricity and water, without fossil fuels and without direct CO₂ emissions. This is called green hydrogen. 

In addition, research is underway into where hydrogen can be used as a supplemental energy source. However, hydrogen is not suitable for all applications. In some cases, alternative solutions like direct electrification are more appropriate.

Hydrogen can play a role in cases where electrification, carbon capture and storage or other molecular energy carriers (such as biomethane) do not offer a suitable alternative. Hydrogen can be used for applications that require a physical molecule, for forms of longer-term energy storage, and for industrial processes with specific technical requirements. However, hybrid or fully electric solutions are often more suitable for applications such as passenger transport or space heating. 

The extent to which hydrogen can actually be used on a large scale in these applications depends on preconditions such as available infrastructure, affordable production and sufficient demand for sustainable products.

Hydrogen plays different roles in various countries and energy systems. The Netherlands has specific characteristics that determine where hydrogen serves a necessary function. This also forms the foundation for developing a hydrogen network.

The Dutch energy system is subject to large seasonal variations. Energy demand is higher in winter than in summer, while the production of sustainable electricity can fluctuate. The Netherlands has virtually no large-scale potential for hydropower. This means creating a fully CO₂-free energy system requires us to store energy for longer periods.

Dutch grid operators have developed joint scenarios based on an energy system in which electricity and renewable gases complement each other. Hydrogen can play a role in this as an energy carrier for storage and flexibility over longer periods.

The Netherlands plays a key role in international aviation and shipping, two areas where electric alternatives are not widely available. Hydrogen is particularly relevant here as a feedstock for sustainable fuels. Other options, such as biofuels, do exist but may be too scarce to meet total demand. In such cases, hydrogen can fill the gap.

The Netherlands has a relatively large chemical industry with strong international links. Many chemical processes require a molecular raw material, and hydrogen can serve this purpose in the production of chemical materials and products. Given the size and interconnectedness of this sector in the Netherlands, hydrogen is particularly relevant as a raw material.

Hydrogen can also be used as a fuel in industrial processes where direct electrification is not feasible. Examples include segments of the steel industry and processes that require very high temperatures, as in the glass and ceramics sectors. These applications either require a molecular energy carrier or lack the electricity grid capacity needed to support direct electrification.