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:
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Phase 1 (2026–2028): first industrial applications with blending of hydrogen in natural gas and a regional distribution network.
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Phase 2 (2029–2032): expansion of supply and infrastructure and connection to the national hydrogen network.
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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:
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availability of hydrogen production
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willingness of industrial customers to use hydrogen
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development of transport and storage infrastructure
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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.