Skip to content
1900

Developing Hydrogen Energy Hubs: The Role of H2 Prices, Wind Power and Infrastructure Investments in Northern Norway

Abstract

Hydrogen is seen as a key energy carrier to reduce CO2 emissions. Two main production options for hydrogen with low CO2 intensity are water electrolysis and natural gas reforming with Carbon Capture and Storage, known as green and blue hydrogen. Northern Norway has a surplus of renewable energy and natural gas availability from the Barents Sea, which can be used to produce hydrogen. However, exports are challenging due to the large distances to markets and lack of energy infrastructure. This study explores the profitability of hydrogen exports from this Arctic region. It considers necessary investments in hydrogen technology and capacity expansions of wind farms and the power grid. Various scenarios are investigated with different assumptions for investment decisions. The critical question is how exogenous factors shape future regional hydrogen production and export. The results show that production for global export may be profitable above 90 €/MWh, excluding costs for storage and transport, with blue hydrogen being cheaper than green. Depending on the assumptions, a combination of liquid hydrogen and ammonia export might be optimal for seaborne transport. Exports to Sweden can be profitable at prices above 60 €/MWh, transported by pipelines. Expanding power generation capacity can be crucial, and electricity and hydrogen exports are unlikely to co-exist.

Funding source: This publication has been funded by the CleanExport project - Planning Clean Energy Export from Norway to Europe, 308811. The authors gratefully acknowledge the financial support from the Research Council of Norway and the user partners ÅEnergi, Air Liquide, Equinor Energy, Gassco, and TotalEnergies OneTech.
Related subjects: Applications & Pathways
Countries: Norway
Loading

Article metrics loading...

/content/journal6077
2024-08-14
2024-12-12
/content/journal6077
Loading
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error