The North Sea energy system of the future according to seven European network operators

Europe's energy system still largely runs on fossil fuels such as natural gas and oil. These sources account for approximately 70 to 80 percent of total energy consumption. The challenge of the energy transition is to replace these fossil sources with sustainable alternatives. This requires both renewable electricity and sustainable molecules, such as hydrogen.

Renewable electricity is the most efficient option where feasible. At the same time, a significant part of the energy system will continue to rely on molecules. This applies, for example, to heavy industry, transport and processes that require high temperatures and where electrification is not sufficient.

In the longer term, towards 2050, a combination of electricity and sustainable molecules will therefore remain necessary. Hydrogen is a strong candidate for this: it provides flexibility by enabling energy storage and deployment where direct electrification is not possible. The expert paper emphasises the importance of a coherent approach to production, transport and use, particularly in locations where large-scale energy generation takes place. The North Sea is such a location.

The North Sea is strategically well positioned for renewable energy production. The region combines shallow waters with strong wind potential, is located close to energy-intensive industry in North-West Europe, and benefits from modern port infrastructure. Europe is also home to leading wind turbine manufacturers.

As offshore wind capacity continues to expand, periods in which more electricity is generated than directly needed will become more frequent. Converting this surplus electricity into hydrogen at sea allows offshore wind to be used more efficiently and increases the flexibility of the energy system. This calls for a different approach to the design of offshore wind areas.

Offshore wind farms with hydrogen production integrate electricity generation and hydrogen production within a single system. In these wind farms, wind turbines and electrolysers are combined upstream of the grid connection. The generated energy can then be transported to shore either as electricity or as hydrogen, via separate infrastructure. This contributes to more efficient use of offshore infrastructure and better utilisation of wind energy. Over time, hydrogen production is expected to shift increasingly offshore, closer to the wind farms themselves.

The development of these wind areas requires clear policy and regulatory frameworks. This includes coordinated planning of electricity and hydrogen networks, in both time and location, to ensure alignment between generation, conversion and transport. It also requires timely development of hydrogen infrastructure, both onshore and offshore, so that hydrogen can actually be delivered.

This has implications for tender design for offshore wind areas. Existing tenders are primarily focused on electricity production and guarantee access to the electricity grid. For integrated offshore wind areas, where hydrogen is produced alongside electricity, access to hydrogen infrastructure must also be guaranteed, enabling project developers to submit appropriate bids.

Tenders must additionally provide scope for combined electricity and hydrogen production. Demonstration and pilot projects are important to gain experience with offshore electrolysis and reduce risks at an early stage.

Download the expert paper for further explanation and source references: ‘Integrated Offshore Wind and Hydrogen Production in the North Seas: A Pathway to Scalable Renewable Energy Deployment’.

The report is published by the Hydrogen Network Operators of the North Seas (HyNOS), a collaboration of transmission system operators from seven North Sea countries: Gasunie (Netherlands), Gascade (Germany), Fluxys (Belgium), Energinet (Denmark), National Gas (United Kingdom), Gas Networks Ireland (Ireland), and Natran (France).