Hy2gen and Deep Wind Offshore Partner to Produce Green Hydrogen from Offshore Wind
Hy2gen, the global developer, builder and operator of renewable hydrogen and hydrogen-based e-fuels plants, announced the collaboration of its subsidiary Hy2gen Norge AS with offshore wind power expert Deep Wind Offshore.
“It is not possible to achieve net zero without green energy carriers, who will need a massive amount of renewable energy,” says Knut Vassbotn, CEO of Deep Wind Offshore.
One of the main challenges with offshore wind development is access and capacity in the power grid. In combination with hydrogen, these challenges are removed, since the power from offshore wind can be used directly in production of green energy carriers. This is one of the drivers for the cooperation agreement with Hy2gen.
“Using energy carriers such as hydrogen is undoubtedly the most effective way to reduce CO2 emissions from industry and the transport sectors. This also resonates with the EU's climate target, that 42 percent of hydrogen in industry must come from renewable energy sources by 2030,” says Hege Økland, Managing Director of Hy2gen Norge AS.
Deep Wind Offshore develops offshore wind projects in Norway, Sweden, and South Korea, while Hy2gen develops and operates facilities for renewable hydrogen production in several locations in Europe, in addition to the US and Canada. The companies experience a particular need to offer green energy carriers to various end users in new markets.
The combination of offshore wind and hydrogen makes green energy available to more and new customer groups, who cannot be electrified directly, but who can switch from fossil fuel to renewable hydrogen.
“The challenge with decarbonization is not ability or intentions, but access to renewable energy. Investment in grid infrastructure is resource-intensive and can be limited for new offshore wind projects. By producing hydrogen close to the offshore wind farm, we can reduce the load on the grid,” says Økland.
Norway aims to award 30 GW of offshore wind by 2040. Should 16 GW be converted to ammonia, which is produced from renewable hydrogen, for use in maritime fuel, it could cut 100 percent of Norway's total maritime emissions of 10 million tons of CO2 annually.
“Hy2gen will bring insight into how energy from offshore wind can be optimally converted into specially adapted energy solutions. This can be hydrogen in liquid or pressurized form, ammonia, SAF or methanol,” says Økland.
She adds that ammonia has been designated as a very relevant zero-emissions fuel for shipping. Hy2gen already works together with two other partners to establish renewable ammonia production in Sauda. Access to more renewable energy is important to be able to offer shipping a sufficient volume of renewable ammonia, and offshore wind can play an important role.
One goal of the collaboration is to develop competitive projects with a strong market focus. By combining market insight and making new renewable energy available through offshore wind, it also can strengthen the competitiveness.
“This is a rock-solid solution for reaching the climate goals. Together, we will develop a completely new value chain. By getting started early, Norway can take a leading position on the world market. That means increased exports and value creation,” says Vassbotn.