Potential for a hydrogen hub Scheldt-Delta region

Smart Delta Resources, a collaboration platform including companies such as Air Liquide, Air Products, ArcelorMittal, Dow, ENGIE, Fluxys, Gasunie, North Sea Port, Ørsted, PZEM, Vopak, Yara, Zeeland Refinery and Vopak.

Assignment

Has the Scheldt-Delta region potential to become a large-scale CO2-free hydrogen hub, which hydrogen carrier has the most potential and what will be the economic added value of such a hydrogen hub?

Project summary

The Smart Delta Resources (SDR) collaboration platform's priority is to work towards substantial CO2 reduction in its industrial cluster by focusing on hydrogen. The SDR wants to know whether the region has potential to become a hydrogen hub. That is why within this project it is investigated whether North Sea Port is a good location as a hub for large-scale CO2-free hydrogen import, export and transit and which hydrogen carriers seem most suitable for this purpose. This is substantiated with analysis of market expectations, existing and necessary infrastructure and a concrete business case, including growth in employment and added value for the region.

Our approach

With extensive desk research and available consulting expertise supplemented by interviews with SDR parties and experts, the market potential for import and transit of hydrogen for the local, national and International market was analyzed. Here, existing cost price models and energy forecast scenarios were used. A benchmark of different Dutch and Belgian ports was used to determine the volume of hydrogen that could reasonably be transported through the SDR ports. This benchmark was performed using our dedicated BCI benchmark model.

For the import potential, a comparison of transport and costs of different hydrogen carriers such as liquid hydrogen, methanol, ammonia, LNG, LOHC etc. was made (including source and destination). These analyses of the market and logistics made it possible to determine which port facilities (type of facilities and space requirements) are needed to enable the import, and the economic added value of the potential hub.

Result

The study concluded that the SDR region is well positioned to become a major hub for clean hydrogen. This has been demonstrated by providing insight into what form and sizes large-scale CO2-free hydrogen import, export and transit is possible in the SDR region, supported by a concrete business case. This showed that currently ammonia is the best alternative as a hydrogen carrier for sea transport from exporting countries to the Netherlands. This is because of the lower cost price, the existing home market and the existing infrastructure in North Sea Port that can be used for these molecules. For the hydrogen hub, the logistics concept has also been detailed with the spatial impact it has on the ports. The opportunities of importing CO2-free hydrogen for the region were highlighted in this exercise, allowing the region and SDR parties to anticipate this.