Neptune Energy and RWE announced the signing of a Joint Development Agreement to develop the offshore green hydrogen project "H2opZee" ahead of 2030.

H2opZee is a demonstration project which aims to build 300-500 megawatts (MW) electrolyser capacity in the North Sea to produce green hydrogen using offshore wind. The hydrogen will then be transported to land through an existing pipeline.

The pipeline has a capacity of 10-12 gigawatts (GW), so is already suitable for the further roll-out of green hydrogen production to gigawatt scale in the North Sea. The intention is to begin the feasibility study in the second quarter of 2022. The project is an initiative of TKI Wind op Zee, an initiative supported by the Dutch government bringing people, knowledge and financing together to support the offshore energy transition.

H2opZee consists of two phases. In the first, a feasibility study will be carried out and an accessible knowledge platform will be set up. The objective is to start the roll-out of hydrogen at sea in the Netherlands. In the second phase, the project will be implemented. For this phase, a tender methodology has yet to be defined.

Neptune Energy’s Managing Director in the Netherlands, Lex de Groot, said: “We see an important role for green hydrogen in future energy supply, and it can be produced here in the North Sea. The energy transition can be faster, cheaper and cleaner if we integrate existing gas infrastructure into new systems.

“This infrastructure is technically suitable, no new pipeline at sea is needed and no new landfall is required through the coastal area. With the PosHYdon pilot we are one of the leaders in this field of offshore energy system integration and reuse. The lessons learned from this project apply to H2opZee.

“The faster we can scale up green hydrogen at sea, the faster industries such as chemicals and steel production can become more sustainable. With H2opZee, the Netherlands is becoming a world leader in this area. That is why we, together with RWE, are enthusiastic about H2opZee and what it has to offer the Netherlands.”

Sven Utermöhlen, CEO Offshore Wind at RWE Renewables, said: “Hydrogen is a gamechanger in the decarbonisation of energy-intensive sectors and H2opZee is a world first of this kind and scale. With Neptune Energy at our side, we want to develop the H2opZee project to demonstrate how offshore wind can be an ideal partner for the production of green hydrogen at scale and to explore the best way in terms of system integration.

“As RWE, we have a 20-years’ track record in offshore wind and have the hydrogen expertise along the entire value chain under one roof. We are convinced that learnings from the H2opZee demonstration project will help in ramping-up the hydrogen economy in the Netherlands as it presents an important step towards the roll-out of green hydrogen production offshore at large scale.”

About H2opZee

H2opZee comprises 300-500 MW additional green hydrogen offshore capacity combined with an existing pipeline that can facilitate 10-12 GW in the future, and is a world first of this kind and scale. The knowledge and expertise gained will strengthen the competitive position of Dutch industry, help to establish the value chain of offshore wind and green hydrogen production in the Netherlands, and deliver technology and knowledge that can be exported worldwide.

H2opZee is one of the 37 proposals for the second round of the National Growth Fund. Consortium partners RWE and Neptune Energy have worked together on the initiative from the very beginning. While the core consortium of H2opZee has been kept small and decisive, knowledge will be shared with the industry and almost 40 relevant organisations have already signaled their support.

About Neptune Energy

Neptune Energy is an independent global E&P company with operations in the North Sea, North Africa and Asia Pacific. In 2020 the company produced 142,000 net barrels of oil equivalent per day and on 31 December 2020 holds 2P reserves of 601 million barrels of oil equivalent. The company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.
Neptune Energy Netherlands is the largest offshore gas producer in the Dutch sector of the North Sea.

About RWE

RWE is leading the way to a green energy world. With an extensive investment and growth strategy, the company will expand its powerful, green generation capacity to 50 gigawatts internationally by 2030. RWE is investing €50 billion gross for this purpose in this decade. The portfolio is based on offshore and onshore wind, solar, hydrogen, batteries, biomass and gas.

RWE Supply & Trading provides tailored energy solutions for large customers. RWE has locations in the attractive markets of Europe, North America and the Asia-Pacific region. The company is responsibly phasing out nuclear energy and coal. Government-mandated phaseout roadmaps have been defined for both of these energy sources. RWE employs around 19,000 people worldwide and has a clear target: to get to net zero by 2040. On its way there, the company has set itself ambitious targets for all activities that cause greenhouse gas emissions. The Science Based Targets initiative has confirmed that these emission reduction targets are in line with the Paris Agreement. Very much in the spirit of the company’s purpose: Our energy for a sustainable life.

About TKI Wind op Zee

TKI Wind Op Zee brings people, knowledge and financing together to realise the offshore energy transition. To this end, TKI Wind op Zee facilitates research, development, demonstration, valorisation, knowledge transfer, (international) collaboration, education and market development in order to maximize the cost reduction and economic impact of offshore energy. The TKI Offshore Wind Innovation Program aims to make a major contribution to the energy transition by supporting research and innovation that make offshore energy generation reliable, affordable and well integrated into the environment and the energy system.