The Netherlands is preparing to host the world’s largest green hydrogen plant, with a planned $700 million investment by Mitsubishi Corp. This facility, with a capacity of up to… 80,000 tons annually, will exceed almost 30 times the capacity of the largest power plant currently in operation.
Production will take place by means of water electrolysis, using electricity generated by an offshore wind farm of Eneco, in collaboration with Mitsubishi under the name Eneco Diamond Hydrogen. Construction of the Eneco Electrolyzer is scheduled to start in 2026 in Rotterdam’s Europoort industrial area, with hydrogen production expected in 2029.
Eneco plans to sell production through its electricity retail network and supply gas to factories and electricity to Europe via pipelines. Furthermore, the continent will serve as a testing ground to perfect hydrogen commercialization, leveraging Europe’s leading position in the international development of hydrogen activities. According to As Tempelman, CEO of Eneco, “investing in green hydrogen is an important part of our strategy for a successful energy transition.”
Europe is encouraging the production of green hydrogen to take the lead in the energy transition
Europe is embarking on an ambitious mission towards green hydrogen, with the aim of increasing annual production 10 million tons by 2030, as part of its commitment to decarbonizing energy supplies. In this way, Mitsubishi is involved in various hydrogen production projects around the world. The Hydrogen Park stands out Takasago in Japan, which will be the world’s first integrated hydrogen validation facility, covering the production, storage and use of this resource. In addition, the company is also present in the United States through various projects.
Hydrogen economic challenges: finding solutions to reduce costs
The low-emission hydrogen production remains expensive and poses an obstacle to its widespread adoption in the energy transition. According to International Energy Agency (IEA)it is crucial that costs are significantly reduced so that clean hydrogen can play a key role in decarbonizing the economy.
Currently, green hydrogen is more expensive than gray hydrogen, generated from natural gas, with prices ranging between 3 and 8 euros per kilogram in some regions. This cost challenge is highlighted in the IEA’s Global Hydrogen Review 2023 report, published in September of the same year.
Despite the risks associated with high equipment costs, the IEA notes that interest in green hydrogen projects remains significant. Globally, China is making progress in this area, while North America and Europe are leading initiatives to boost low-emission hydrogen production. Mitsubishi Corporation’s recent commitment reflects the industry’s determination to advance clean energy projects despite forecasts of rising costs.