Provaris, Norwegian Hydrogen target compressed green hydrogen exports to EU by 2027

Compressed hydrogen developer Provaris Energy and green producer Norwegian Hydrogen are targeting tanker shipments to the EU by 2027, the companies said in a statement Jan. 12.

Under a memorandum of understanding, the two companies will partner on developing a large-scale green hydrogen supply chain from production to delivery and distribution, with completion of a design concept study due in the first half of 2023.

The study will identify a preferred production and export site and determine the technical and economic viability of a fast-track supply chain to connect key ports in Germany and the Netherlands, they said. Exports could also go to ports in the UK, they added.

The companies would "accelerate development ambitions of an integrated export hydrogen project from the Nordic region that will benefit from the simplicity and efficiency of compressed hydrogen as a marine carrier," Provaris CEO Martin Carolan said in the statement.

The collaboration will enable Norwegian Hydrogen to scale up compressed hydrogen volumes from multiple sites across the Nordics.

Australia-based Provaris is developing a portfolio of integrated renewable hydrogen supply chains that involves production projects and transportation of gaseous hydrogen by ships, which contrasts with liquified hydrogen carriers. It is developing the 2.8-GW Tiwi H2 project in Australia.

The company received approval from the American Bureau of Shipping for the design of its 26,000 cu m (430 mt), compressed hydrogen carrier, paving the way to award ship-building contracts in late 2023.

Norwegian Hydrogen, meanwhile, is developing renewable-powered hydrogen production facilities to meet future demand for zero-emission fuels and feedstocks from the transport and industrial sectors.

The scope of the joint study includes renewable power supply, hydrogen production, compression facilities, storage, import and export infrastructure and Provaris' N2Neo Carrier.

Norwegian Hydrogen is developing its Hellesylt 3-MW pilot project in northwestern Norway to produce 1.3 mt/day of hydrogen from the fourth quarter of 2023, powered by local hydro plants.

The companies see great potential from Norway's hydropower capacity for producing low-cost hydrogen for export across Europe, eyeing gigawatt-scale exports in the future.

The EU is targeting 10 million mt/year of hydrogen imports by 2030, in addition to 10 million mt/year of domestic production.

Norway has an installed hydro capacity of 33 GW, according to S&P Global Commodity Insights data, while the Nordic region produced 209.7 TWh of hydropower in 2022, accounting for around half of output across Europe's main hydropower markets.

Norwegian Hydrogen said on its website the Hellesylt project will largely use "closed-in power" in the summer, due to limitations in the grid system.

The companies plan to apply for funding through national and EU schemes.

Platts, part of S&P Global Commodity Insights, assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur9.95/kg ($10.71/kg) Jan. 11 (Netherlands, including capex), based on month-ahead power prices. PEM electrolysis production was assessed at Eur11.97/kg.