Ørsted and Norway's Yara, the world's leading fertilizer producer, have joined forces to develop a 100 MW electrolysis plant for the production of renewable hydrogen from offshore wind.
This will use renewable hydrogen, so-called green hydrogen, instead of fossil-based hydrogen to produce ammonia at Yara's plant in Sluiskil, located in the Dutch province of Zeeland.
The renewable hydrogen will generate approximately 75,000 tons of green ammonia per year, corresponding to approximately 10 percent of the capacity of one of the ammonia plants in Sluiskil. The production will be based on renewable energy from Ørsted's offshore wind farms, Borssele 1 & 2, which Ørsted will soon inaugurate and which are located close to Yara's plant.
The plan is to use the green ammonia to produce CO2-neutral fertilizer products to reduce CO2 emissions in the food value chain. In the longer term, the ammonia also has the potential to be used as a climate-neutral fuel for ships.
Need for co-financing
Green hydrogen is a CO2-free alternative to fossil-based hydrogen, but is currently associated with significantly higher costs. Making up for this cost gap will take time and require public support to supplement private investments in large-scale production of renewable hydrogen and ammonia.
Therefore, Ørsted and Yara will now apply for public co-financing for the development and construction of the 100 MW electrolysis plant.
If the project receives sufficient co-financing and if the business case is sound, a final investment decision on the construction of the plant can be made in late 2021 or early 2022.
- With the right support, this joint flagship project between Yara and Ørsted will not only lead to a significant reduction in CO2 emissions, it will also help mature the technology with a view to reducing emissions from European industry in a broad sense, says Martin Neubert, Group President and CEO of Ørsted Offshore.
- Green ammonia can be important for sustainable food production and is at the same time one of the most promising CO2-neutral energy carriers with multiple applications in the energy sector, including as a marine fuel with reduced CO2 emissions, says Terje Knutsen, Group Executive Vice President and Head of Farming Solutions at Yara.
The project could be a milestone in the hydrogen roadmap for the Smart Delta Resources cluster in Zeeland and an important step towards increasing the Netherlands' renewable hydrogen capacity to 3-4 GW by 2030.
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