Is the Move to Green Hydrogen a Step Closer?

Randolf Weterings

Program Manager Electrification & Hydrogen, Port of Rotterdam

Q.

Hydrogen’s role as a sustainable energy option is growing. What are the Port’s current and planned ambitions on sustainable energy?

We currently supply approximately 14% of Europe’s energy supply. More than 95% of the energy that comes into the Port travels to different destinations, so it was vital for us to assess future volume expectations by conducting a study with as many of our customers, clients and partners as possible. It was clear from this that sustainability and energy efficiency were key expectations and that future demand requirements would mean approximately 20 million tonnes of hydrogen flowing through the Port by 2050.

Our capacity to generate this locally is limited to 10%, so our vision is that 90% of hydrogen needs will be imported. At the same time, we are working with partners and introducing initiatives that will ensure the Port is carbon neutral by 2050.

Approximately 20 million tonnes of hydrogen will be flowing through the port by 2050.

Q.

What steps is the Port taking to achieve its vision of becoming a major hydrogen hub, and what have been the key challenges?

It’s an ambitious programme, so it was essential to break it down into different manageable projects and timelines. For example, one of our focal points is to have a hydrogen backbone in place in the port area by 2024. That pipeline is necessary to connect electrolysis plants with offtakers. Once this infrastructure is there, you can add import terminal to the system etc. You’re trying to organise a whole value chain at the same time, but elements like a common carrier pipeline are more important to get started than a trading platform. A fast growth of production, imports and offtake will help drive down costs. But we have to remember that this is complex and unknown territory, so some challenges have not yet been encountered. In terms of raising finance, building partnerships, social implications and the regulatory landscape, it’s a whole new world for everyone.

“In terms of raising finance, building partnerships, social implications and the regulatory landscape, it’s a whole new world for everyone.”

– Randolf Weterings, Program Manager Electrification & Hydrogen, Port of Rotterdam

Q.

How important is collaboration on such a complex project?

Learning as you progress has highlighted the importance of working across the complete value chain. We know that hydrogen is imported in different compounds, such as ammonia or liquid hydrogen, so it’s about assessing what carriers we currently have and what new carriers we need to develop. We already have a terminal that can handle ammonia, but liquid hydrogen is new for the Port. The project also needs to take account of different country initiatives on carbon reduction and work closely with them. So, for example, we are working with Netherlands Transmission System Operator (TSO), who operate the national gas transmission grid, on the move from gas to sustainable hydrogen. So we are learning as we go along and collaborating with companies with specific expertise in these areas. These partnerships are essential in connecting the dots so that the correct foundations are built, and the project progresses smoothly.

Q.

What specific plans do you have to scale up green hydrogen production, and where does existing infrastructure fit into the plan?

We are looking at several options, including working with partners such as offshore wind experts to develop offshore wind capacity and a consortium called HyTrucks to have 1000 hydrogen trucks on the road by 2025. We are also working with partners to build the infrastructure for energy transport corridors in Europe, including inland navigation routes on the waterways. So it’s not just about infrastructure for production; it’s also about transportation.

In terms of scaling up hydrogen production, we currently have two privately owned hydrogen pipelines in the port, one of which is connected to Belgium and northern France.

We are also working on a third open-access pipeline that will become operational in 2024 for the Netherlands. Then there will be a second phase in 2026 that will extend the pipeline towards Germany. So it’s about making sure we have the right bridges in place to connect with customers, taking into account current hydrogen use and the eventual rollout of green hydrogen. The exact mix of different hydrogens will be based on demand and certification systems in place.

“It’s about making sure we have the right bridges in place to connect with customers, taking into account current hydrogen use and the eventual rollout of green hydrogen.”

– Randolf Weterings, Program Manager Electrification & Hydrogen, Port of Rotterdam

Q.

How does the certification system influence the use of hydrogen and the Port of Rotterdam’s aspirations to be a hydrogen hub?

If we take Germany, they are big supporters of the move to green hydrogen but tolerate blue hydrogen because there isn’t enough green hydrogen to fulfil energy needs at present. Yet the hydrogen molecule is the same whether it’s grey, blue or green, so there must be the correct certification system in place so customers can make the right choices, particularly once the supply of green hydrogen scales up. Having a proper certification process is particularly important when developing a trading system for hydrogen that connects hydrogen producers with consumers. In terms of our aspiration to become a major hydrogen hub, we know that it’s only by sharing our experiences and expertise that we can develop a true hydrogen-based economy. So we are working hard to give something back to the broader economy as we move forward. We now have Memorandums of Understanding (MOUs) with over 15 countries to develop hydrogen projects.

Q.

Does the Port of Rotterdam see itself as a developer or facilitator of the move to hydrogen?

It was clear from initial studies that hydrogen would play a significant role and no-regret in transitioning to a sustainable energy source. What wasn’t so evident was how quickly we’d need to develop those hydrogen capabilities. At the Port of Rotterdam, our role is to facilitate the parts of the hydrogen hub that cannot, or not efficiently be developed by a commercial company. Our main role is facilitating, but sometimes we need to do a little bit more to really start the development.

Q.

Finally, what have you learned so far that will help other ports and countries develop their hydrogen capabilities?

First, it’s crucial that you have a clear vision and that your stakeholders are involved from the outset. Don’t get bogged down by creating a perfect plan; there will always be steps along the way that don’t go as well as expected. Extensive research and data should underpin a vision that is flexible enough to get through challenging times. It’s then a case of stepping into the unknown to back your convictions with the right level of investment. Secondly, certainty on the final goal of your project needs to be kept clearly in mind. You cannot base costly infrastructure solely on each phase of the project; developing infrastructure for the long-term needs to be based on a long term vision. There’s also much discussion about the old industry versus the new when we talk about the transition to sustainable energy. But I think if we bring the two together, it can really strengthen our approach. Existing industry has the experience required to scale up, whereas new players are good at onboarding fresh ideas. It’s about using skills to transform industries, not separate them. We need to remember that transitioning to sustainable energy is crucial for the environment and society, so it’s better to try things and learn from our failures than not try at all.

“We need to remember that transitioning to sustainable energy is crucial for the environment and society, so it’s better to try things and learn from our failures than not try at all.”

– Randolf Weterings, Program Manager Electrification & Hydrogen, Port of Rotterdam

Source:

1. IEA. 2021
2. European Commission. 2020
3. European Hydrogen Backbone. 2020

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