Industrial Cluster East Groningen may be EU's first HXNUMX-cluster
The companies united in the East Groningen Industrial Cluster want to become greener. The threat of grid congestion and the current lack of alternatives to natural gas make the development of blue and green hydrogen urgent. preliminary study of New Energy Coalition Research into greening opportunities shows that hydrogen production from Eemshaven contributes to a new economic perspective for industry in the North.
IndustrieCluster Oost-Groningen
IndustrieCluster Oost-Groningen is a partnership of diverse companies, all working to reduce their CO2 emissions as part of their contribution to the energy transition. As a group, they currently use over 215 million cubic meters of natural gas annually, that is becoming increasingly expensive due to rapidly rising CO3 tariffs.
How can we make things greener?
To investigate the greening possibilities for the cluster, Catrinus Jepma and Jeffrey Paays from New Energy Coalition, in collaboration with the cluster and the organizations responsible for the supply, transport and connection of energy, a preliminary study done. Marieke Abbink-Pellenbarg, director of New Energy Coalition"To be able to green the energy transition, it's important to know the various options, their costs, and their feasibility. The results of this preliminary study were shared with the public today during the Wind Meets Gas symposium in Groningen, by presenting the report to Caroline Kollau, Deputy Director-General, Ministry of Climate and Green Growth."
From the preliminary study It appears that switching from natural gas to locally produced hydrogen is a good option for reducing companies' CO2 emissions, especially because grid congestion and high network tariffs are a bottleneck for electrification, and electrification is technically impossible or difficult for some companies. The national hydrogen network being rolled out from Eemshaven and the Groningen region's commitment to developing into a leading hydrogen region to leave the natural gas era behind make the choice for hydrogen even more logical. With this transition, the IndustrieCluster Oost-Groningen could even become Europe's first regional hydrogen cluster. For cost reasons, a mix of regionally produced green and blue hydrogen will likely be used initially, with the role of green hydrogen gradually increasing.[1].
Feasibility and urgency
The transition of the East Groningen Industrial Cluster to hydrogen helps companies become more sustainable and initiates the launch of a regional hydrogen network that will attract other/new businesses. However, such a transition entails high costs. First and foremost, these costs relate to the construction of a hydrogen distribution network and technical adjustments within the companies. It is estimated that this could cost approximately €100 million in one-time costs. In addition to these investment costs, operational costs will also increase because hydrogen is initially more expensive than natural gas. This means that the transition to hydrogen requires financial support from the government. This will allow the transition to locally sourced hydrogen to be completed before 2030. The companies in the East Groningen Industrial Cluster thus consolidate their value as a significant provider of employment (approximately 10.000 jobs) and a driving force behind the region's sustainability efforts.
About the parties participating in the project
IndustrieCluster Oost-Groningen is a partnership of nine energy-intensive companies with 14 production sites in the region, all working together to achieve sustainability. Participating companies include Royal Avebe, Eska, Kisuma Chemicals, Nedmag, PQ Silicas, Smurfit Kappa, Solidus Solutions, Steenindustrie Strating, and Wellness Pet Company NL. Other companies that have contributed to the initiative include: preliminary study by New Energy Coalition are: Equinor, ENGIE, RWE, Enexis, NorthGrid, EBN and DNV.
[1] Green hydrogen is hydrogen produced from renewable energy; blue hydrogen is hydrogen that does not release carbon because it is stored in Norway under the North Sea.