Offshore wind developer Ørsted is submitting a bid for the Hollandse Kust (Zuid) III and IV windfarms in the Netherlands, and as part of its proposal, is working to establish green hydrogen projects based on power from them.
Ørsted president and chief executive Henrik Poulsen said, “Using offshore wind to produce green hydrogen from electrolysis is an enabler to decarbonise other sectors such as heavy industries and transport.
“Production and sale of green hydrogen to large industrial customers can help stabilise revenues from offshore windfarms, which rely on the market price of power, as Hollandse Kust (Zuid) III and IV will.
“We are ready to scale-up and bring down costs of green hydrogen as we have done with offshore wind. We are strongly committed to the Netherlands, and we believe that our bid offers significant benefits in terms of clean and cost-competitive energy as well as industrial development.”
If the company's bid wins the project, and Ørsted implements production of green hydrogen, it would be the first time an offshore windfarm has been used to do so, although other small-scale projects have been proposed.
Late 2019 saw three industry-leading companies – Shell, Siemens and TenneT – call for accelerated development of the production of green hydrogen using electricity from offshore wind.
Using renewable energy to electrolyse water to create hydrogen, which can be stored indefinitely or used in a huge number of potential applications from transport to heating to industrial processes and the chemical industry, has been proposed on a number of occasions recently.
Ørsted is already heavily engaged in the Dutch offshore wind market through the 752MW Borssele 1 & 2 project which Ørsted won the tender for in 2016, which will be the largest offshore windfarm in the Netherlands when completed in Q4 2020/Q1 2021.
Ørsted Offshore executive vice president and chief executive Martin Neubert said, “We are progressing very well with Borssele 1 & 2. The project has given us valuable insight and experience which we will leverage on Hollandse Kust (Zuid) III and IV.
“As a strong sign of our commitment, our board of directors has already approved the final investment decision for Hollandse Kust (Zuid) III and IV. The funding is secured and guaranteed on our balance sheet, so if the Dutch Government selects Ørsted, they can be certain that the windfarm will be built.”