Towards a regional industrial hydrogen cluster around East Groningen

This report, prepared by Catrinus Jepma and Jeffrey Paays van New Energy Coalition, investigates the development of a regional hydrogen cluster around the Industrial Cluster East Groningen (IC-OG).

The report is part of a feasibility study in which a broad consortium of organizations is collaborating on how hydrogen can play a role in industrial processes in the region. The goal is to replace a significant portion of natural gas use in production processes with regionally produced low-carbon hydrogen by 2032, while simultaneously developing the necessary infrastructure. The report describes the preconditions, challenges, and steps needed to achieve this.

Phased approach for developing a regional hydrogen cluster

To gradually replace natural gas with low-carbon hydrogen in industrial processes, a complete regional value chain is needed, from production and transport to storage and use. It also describes the necessary infrastructure, such as regional distribution networks and connections to national hydrogen networks. To achieve this, the report proposes a phased approach:

  • Phase 1 (2026–2028): first industrial applications with blending of hydrogen in natural gas and a regional distribution network.

  • Phase 2 (2029–2032): expansion of supply and infrastructure and connection to the national hydrogen network.

  • Phase 3 (2032–2040): further growth towards a fully regional hydrogen cluster.

This phasing helps to better coordinate investments, infrastructure development and demand for hydrogen.

Economic and policy preconditions

The report describes that the development of a regional hydrogen cluster depends on several factors, such as:

  • availability of hydrogen production

  • willingness of industrial customers to use hydrogen

  • development of transport and storage infrastructure

  • price differences between hydrogen and natural gas

The price difference is referred to as the unprofitable portion (ORT) that must be bridged through subsidies or other policy instruments.

These experts contribute

Catrinus Jepma

Senior Advisor

As emeritus professor of Energy and Sustainability at the University of Groningen and senior advisor at New Energy Coalition, I combine my academic expertise with applied research on the energy transition. My focus is on themes such as hydrogen, the North Sea, and the future of Groningen. For example, I contribute to the sustainability of the East Groningen Industrial Cluster, which is developing into a regional hydrogen cluster. I am also closely involved in the international hydrogen and offshore energy symposium "Wind Meets Gas," which brings together the countries surrounding the North Sea annually.

Expertise: Economy of energy Hydrogen North Sea as an energy region Regional energy transition