A large green hydrogen project at the Chemiepark Delfzijl will be postponed until 2028 at the earliest. According to initiator HyCC, developments on the hydrogen market are going slower than expected. In addition, the costs for hydrogen projects and renewable energy have increased in recent years.
The intention was to produce green hydrogen with water and renewable energy. The hydrogen could then be used for, for example, the production of sustainable fuel for aircraft.
Rules still in implementation phase
All this seemed very interesting, also in view of a European directive that obliges industries and fuel producers to use green hydrogen for part of their production in order to reduce CO2 emissions. But according to HyCC, the rules are still in the implementation phase in the Netherlands. The company now only expects a mature market for green hydrogen by 2030.
“Green hydrogen is crucial to making Dutch industries more sustainable and achieving national climate goals. At the same time, the rules for hydrogen use are still being developed and current market conditions are not yet at the level necessary to implement the project on the desired scale. We are therefore forced to adjust the design and planning of the project,” HyCC director Marcel Galjee said in a statement.
Order cancelled
HyCC already received the environmental permit for the project, called H2eron, last year and was working towards an investment decision in 2024. 40 megawatts worth of necessary electrolysers had also been ordered from the Norwegian company Nel. HyCC has now canceled that order. The company, a partnership between Macquarie’s Green Investment Group and the Dutch chemical company Nobian, is also examining whether agreements already made with suppliers need to be adjusted to the new planning.
Earlier this year, Tata Steel also adjusted its hydrogen plans to make the blast furnace complex near IJmuiden more sustainable. According to the steel group, the switch to production using hydrogen will only be possible “as soon as hydrogen becomes available in sufficient quantities and at the right price.” It is not yet clear when that will be.