Netherlands and North Rhine-Westphalia
A hydrogen hub for all of Europe?
By Andrea Sellmann and Mary Abdelaziz-Ditzow
4/20/2023 12:23 p.m
The Netherlands is one of Germany’s three largest gas suppliers. Experts also see great potential in green hydrogen. Together, the Netherlands and North Rhine-Westphalia can become an important “Hydrogen Valley” in Europe.
A huge gas field in the province of Groningen has made the Netherlands a “big player” in European gas. Due to environmental problems and the risk of earthquakes, gas production has long been a hot topic for our neighbors. What began with hope in the 1960s is now long overdue.
It was more about the money than the people, according to the final report of a parliamentary commission of inquiry that examined the gas business in detail: The Dutch state alone earned around 360 billion euros. The people in the region received the reward for this: since 1986, the earth has trembled 1,600 times. Tens of thousands of buildings were severely damaged, and calls for an exit grew louder and more listened to. After the Russian invasion of Ukraine, the Netherlands did not stop production and continued to supply Germany. But one thing is also certain: the future will look different.
Germany is observing this development very closely: After all, the Netherlands is an important partner in energy supply. For the economist André Wolf, they will remain important even if gas production in Groningen is stopped. This can be seen, for example, in the import of liquid gas via the port of Rotterdam and in the planning of the electricity grid to transport offshore wind power from the North Sea to where it is needed. Wolf sees great potential in green hydrogen in particular: if the Netherlands and the state of North Rhine-Westphalia cooperate, the partners could become an important European hydrogen hub.
Optimal conditions
The foundation is currently being laid for him in the German-Dutch border region: “In numerous projects, they are currently in the process of ensuring that a hydrogen infrastructure is built in Europe,” said Wolf in the podcast “Wirtschaft Welt & Weit”. In a study by the Center for European Politics, the energy expert examined the future of the European hydrogen economy very closely.
The starting conditions are optimal for him: The North Sea offers great scope for the production of offshore wind power, which could go into the production of green hydrogen. And the distances to the major sales centers, especially to the steel and chemical industry in North Rhine-Westphalia, are short. This could prove to be a central advantage of the German-Dutch cooperation: For Wolf, the economies of scale are the central lever for being able to reduce the currently high prices for hydrogen in the future and to increase competitiveness.
But one thing is also certain: the road to a “Hydrogen Valley” is still very long – and for the industry it is currently more of an investment in the future. Wolf currently sees the production of hydrogen “still far from a price level that can be described as competitive”. According to Wolf, it could still take around 15 to 20 years for a hydrogen-based industry to become established in Europe. The Netherlands and North Rhine-Westphalia have potential, but they definitely need staying power.
What does Germany have to do in order to still play an important role in the economic world of tomorrow? Who are we dependent on? Which countries benefit from the new world situation? Mary Abdelaziz-Ditzow discusses this in the ntv podcast “Wirtschaft Welt & Weit” with relevant experts.
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