The hydrogen economy is quickly gathering momentum after Shell announced its plans to take a green hydrogen plant into operation as early as 2023. This plant will be constructed at Maasvlakte 2. From here, the produced hydrogen will be transported via a pipeline to Shell’s refinery in Pernis. Gasunie and the Port of Rotterdam Authority intend to realise the new pipeline in a joint venture.
The green hydrogen plant and the pipeline are part of a series of projects associated with the production, import, use and transfer of hydrogen in which the Port Authority is working together with a variety of partners. These concrete projects seamlessly tie in with the hydrogen outlook recently published by the Dutch government.
Allard Castelein, CEO of the Port of Rotterdam Authority: ‘We are currently expediting our plans to construct a public hydrogen network in the port area. The work on this backbone for Rotterdam’s industrial sector will be rounded off concurrently with Shell’s electrolyser. A main transport network like this can be used to connect producers and users. This in turn helps to create a market and boosts the production and consumption of hydrogen. Besides accommodating production, in the longer term Rotterdam will also play a crucial part in the import of hydrogen thanks to the realisation of multiple hydrogen terminals. Hydrogen promises to become the energy carrier of the 21st century. In Northwest Europe, we will not be able to produce sufficient hydrogen locally, meaning that a large volume will need to be imported. Rotterdam will play a central role in this process – similar to its current role in the oil sector. This allows us to reinforce the port of Rotterdam’s position as an important pillar of the Dutch economy.”
Hydrogen pipeline
The Port Authority and Gasunie plan to jointly construct and operate the hydrogen pipeline, which will run parallel with the A15 motorway between Maasvlakte and Pernis. The parties plan to take the definite decision to greenlight construction in the first half of 2021. In the near future, Rotterdam’s hydrogen pipeline will be hooked up to the national hydrogen network developed by Gasunie.
Shell will be constructing its hydrogen plant at a dedicated industrial site realised by the Port Authority at Maasvlakte for electrolysers operated by various companies. Another project planned at this site is H2-Fifty (the construction of a 250 MW electrolyser operated by BP and Nouryon). This facility is expected to become operational in 2025. Situated on the coast of the North Sea, this special industrial site (named a ‘conversion farm’) uses offshore wind power to produce hydrogen. The hydrogen produced at the plant will be transported to users via a pipeline.
Blue and green
Apart from these two mega electrolysers, various companies in the port area are working on plans for smaller models with capacities ranging from 5 to 100 MW (for the sake of comparison: the largest electrolyser currently operating in the Netherlands has a capacity of 1 MW). In addition, a consortium is working on plans for the production of the hydrogen variant known as blue hydrogen. The objective within this H-vision project is to produce hydrogen from gas sourced from refineries or natural gas, while capturing the carbon released by this process and storing it under the North Sea seabed. The large-scale production of blue hydrogen could be set up well before 2030. By contrast, the production of green hydrogen via electrolysis requires a huge volume of green electric power – which will at any rate be in short supply for another decade.
Another project that has therefore been initiated is the realisation of 2 GW of extra offshore wind capacity (extra when compared to the existing plans for wind farms out on the North Sea) that will be reserved for the production of green hydrogen. This has been recognised as an option in the government’s Climate Agreement, and the Port Authority is currently conferring with the national authorities regarding the landing of this project. The electrolysers that will be sourcing this offshore power can be set up at the Maasvlakte conversion park.
Carbon reduction
The H-Vision project will yield around 2.2 to 4.3 Mt in carbon savings. The 2 GW electrolysis ‘conversion park’ will reduce carbon emissions by 3.3 Mt (based on the electrolysers running 8,000 hours per year, and compared to the production of grey hydrogen).
Transport, heating
The Port Authority is also closely involved in various projects that are intended to promote hydrogen as a transport fuel – both in road haulage and inland shipping. In the road transport sector, parties are setting up a consortium that aims to have 500 trucks running on hydrogen by 2025. Inland shipping can also move from diesel to hydrogen. In the longer term, hydrogen can also be used to heat greenhouses and buildings – particularly locations that are less suited for heating via a heat network or a ground source heat pump.
Large-scale import
Northwest Europe consumes far more power than can be generated locally from renewable sources. That is why the region is required to import hydrogen (or hydrogen bonds like ammonia) on a large scale. The national government has asked the Port Authority to map out the various options to import hydrogen from abroad, so the port of Rotterdam can retain its pivotal role in international power transport. Similar to how the port presently imports large volumes of oil and coal for the Netherlands, Germany and Belgium, in the near future, Rotterdam will serve as a major hub for renewable energy flows.
The domestic demand for hydrogen is expected to increase to approximately 14 Mt per year by 2050. If half of this volume is sourced via Rotterdam, the port will be handling some 7 Mt in throughput. According to prognoses, there will also be a sizeable demand from neighbouring countries (and specifically Germany) for hydrogen via Rotterdam: approximately 13 Mt by 2050. This puts the required volume of hydrogen produced or imported in Rotterdam at 20 Mt. This volume would require 200 GW in operational wind farm capacity. The Dutch section of the North Sea currently accommodates 1 GW in wind farm capacity. This can be increased to 60-70 GW by 2050. The lion’s share of the required hydrogen will therefore need to be imported. This calls for import terminals and pipelines similar to the facilities that have been set up for oil and oil products. From 2030 on, forecasts therefor include the large-scale import and transport of hydrogen to the hinterland – to raise the sustainability of industrial activities in Geleen and North Rhine-Westphalia, among other things.
The Port of Rotterdam Authority recently drew up a hydrogen outlook that describes and quantifies the aforementioned trends. This document is based on a series of studies performed by various large corporations and Dutch and international organisations in the energy sector.
Background
Hydrogen resembles natural gas as an energy carrier: it is gaseous and generates exceptionally high temperatures during combustion. This makes it eminently suited as a fuel for industrial processes and transport. But it can also be used as a base material for the production of all sorts of plastics that are currently still made from petroleum.
Hydrogen is a sustainable alternative to natural gas. It can be separated from natural gas – during which the carbon dioxide released by this process is captured and stored in the North Sea seabed. This yields what is known as blue hydrogen. Another way to produce hydrogen is by separating water molecules (H2O) into H2 and O with the aid of electric power – from renewable sources or otherwise. This product is called green hydrogen.
MOL joins GCMD as impact partner to accelerate decarbonisation. Image: Pixabay
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The Global Centre for Maritime Decarbonisation GCMD and MOL announced the signing of a five-year Impact Partnership agreement. On the same day, both parties held a signing ceremony at the GCMD office in Singapore.
Decarbonisation in the maritime industry is a challenge that needs to be achieved through accelerating collaboration and increasing investment by shipping companies, their customers, ports, energy suppliers and public sector actors. As an Impact Partner of GCMD, MOL will utilise its expertise developed over their long history and make various contributions and collaborations through its participation in GCMD’s projects, including providing access to vessels, operating data and evaluation reports so that internal learnings can be shared publicly and used for future trials.
MOL is one of the world’s leaders in the maritime industry and has been leading worldwide discussions on achieving decarbonisation. The carbon budget concept imposes a ceiling to the cumulative amount of greenhouse gas (GHG) that can be emitted globally in order to limit global temperature rise to 1.5 degree Celsius by 2050. Intermediate targets to reduce emissions, in addition to a net-zero target, are necessary. While plans are in place to adopt low or zero emissions vessels in the future, it is important to deploy measures to reduce emissions now. Such measures include the use of low-carbon and transition fuels that are available today, and deploying energy savings devices onboard vessels. MOL will bring its extensive capabilities and experience to bear as it joins GCMD and existing partners to accelerate international shipping’s decarbonisation.
Professor Lynn Loo, CEO of the Global Centre for Maritime Decarbonisation, said: “We are proud to have MOL, one of the leading shipowners in Japan, come onboard as an Impact Partner. We are excited to tap on MOL’s track record in developing technical energy efficiency measures to broaden our perspective as we scope an initiative to help increase industry adoption of measures that can increase fuel efficiency of ships.”
Toshiaki Tanaka, Representative Director, Executive Vice President Executive Officer, and Chief Operating Officer of MOL, said: “We are very pleased to be a partner of one of the most important global coalitions. We will make our biggest effort to contribute and accelerate progress towards the net zero future in maritime industry, together with GCMD and all its partners.”
About the Global Centre for Maritime Decarbonisation
The Global Centre for Maritime Decarbonisation (GCMD) was set up on 1 August 2021 as a non-profit organisation. Our strategic partners include the Maritime and Port Authority of Singapore (MPA), BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express, Seatrium, bp, Hapag-Lloyd and NYK. Beyond the strategic partners, GCMD has brought on board 15 partners that engage at the centre level, in addition to more than 80 partners that engage at the project level.
Strategically located in Singapore, the world’s largest bunkering hub and second largest container port, GCMD aims to help the industry eliminate GHG emissions by shaping standards for future fuels, piloting low-carbon solutions in an end-to-end manner under real-world operations conditions, financing first-of-a-kind projects, and fostering collaboration across sectors.
Hapag-Lloyd partners with DB Schenker to decarbonise supply chains. Image: Hapag-Lloyd
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Hapag-Lloyd has entered into a partnership with DB Schenker for the purpose of decarbonising supply chains. Following the launch of “Ship Green” in May, the renowned logistics provider has selected Hapag-Lloyd’s sustainable transport solution as part of its sustainability initiatives.
DB Schenker and Hapag-Lloyd have signed an agreement for emission-reduced container transports with a waste- and residue-based biofuel. By end of 2023, DB Schenker plans to claim approximately 3,000 metric tonnes of carbon dioxide equivalent (CO2e) emissions avoidance. This is based on at least 1,000 tonnes of pure biofuel.
“We are excited about this new partnership with DB Schenker as we share the common goal of making logistics more sustainable. Collaborations like these set a clear signal in the industry and are another example of a step-by-step approach to further decarbonise supply chains”, said Henrik Schilling, Managing Director Global Commercial Development at Hapag-Lloyd.
“I am very pleased that together with Hapag-Lloyd we are setting another example for sustainability in our industry. This partnership further enlarges our global biofuel offer in ocean freight. With this commitment we are one step closer to our goal of becoming carbon-neutral”, said Thorsten Meincke, Global Board Member for Air & Ocean Freight at DB Schenker.
Hapag-Lloyd has launched the Ship Green product to offer its customers emission-reduced ocean transports. Based on biofuel, customers of Hapag-Lloyd can add Ship Green as an additional service to their existing bookings – thereby avoiding CO2e emissions. Using the so-called “Book & Claim” chain of custody, Hapag-Lloyd can attribute avoided emissions to all ocean-leg transports, regardless of the vessel and route used. Ship Green is available for all shipments containing standard, hardtop or tank equipment. By offering Ship Green, Hapag-Lloyd is continuing along its path towards achieving climate-neutral fleet operations by 2045.
EU member states agree to the "FuelEU Maritime" regulation. Image: Port of Hamburg
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EU Member States cleared the way to bring sustainable renewable fuels into maritime transport. They approved the “FuelEU Maritime” regulation. The EU Parliament had also voted in favour of the agreement reached in the trilogue procedure.
The new requirements will apply to ships with a gross tonnage of more than 5,000 entering, leaving or staying in ports in the territory of an EU Member State. In addition, shore-side electricity will be mandatory for container and passenger ships from 2030. The use of synthetic fuels from renewable energies will be specifically promoted for shipping.
Federal Minister of Transport Dr Volker Wissing:
After we were recently able to achieve a breakthrough for maritime climate protection at UN level, we are now pushing the actual transformation towards climate-neutral shipping at European level with the “FuelEU Maritime” initiative. The draft regulation is open to technology and takes into account the special competitive conditions in the maritime transport sector. The main objective is to increase the demand for renewable and low-carbon fuels and their consistent use, thereby decisively reducing greenhouse gas emissions in maritime transport. The initiative is thus expected to play a fundamental role in the implementation of the European Climate Change Act for shipping.
Federal Environment Minister Steffi Lemke:
Today the EU has set a decisive course for more climate protection and the use of renewable fuels in maritime transport. Shipping companies will continue to rely on fuels in the future, because electric drives are not yet an option for long-distance transport. In maritime transport, e-fuels from renewable energies are therefore a sensible climate-friendly alternative. With the new requirements, the EU is giving manufacturers and shipping companies the necessary planning security, driving forward the development of modern technologies and making renewable fuels for maritime transport ready for the market. But there are also shadows: The fact that fuels from fossil sources and nuclear energy are also permitted as a compliance option is regrettable. The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) will continue to advocate the use of predominantly synthetic fuels from renewable energy sources in order to make maritime transport climate neutral.
FuelEU Maritime lays down uniform EU-wide rules for limiting the greenhouse gas intensity of the energy used on board a ship, and thus above all the fuels. The regulation from the Fit for 55 package stipulates that shipping in the EU must reduce its emissions by 2 percent from 2025, 6 percent from 2030, 14.5 percent from 2035, 31 percent from 2040, 62 percent from 2045 and 80 percent from 2050. The GHG intensity reduction targets are set against the 2020 average GHG intensity of energy consumed on board ships. The greenhouse gas emissions of all fuels are assessed on the basis of a life cycle assessment (so-called well-to-wake (WtW) approach that includes the greenhouse gases carbon dioxide, methane and nitrous oxide). All fuels are permitted as a compliance option; the legislative initiative is thus technology-neutral.
The use of synthetic fuels is encouraged by a special mechanism: if the share of synthetic fuels from renewable energy sources (so-called “renewable fuels of non-biological origin, RFNBO) in the fuel mix does not exceed one percent in 2031, a mandatory minimum quota of two percent for these RFNBO fuels will automatically come into force from 2034. Beyond the use of alternative fuels, the FuelEU Maritime Regulation obliges container and passenger ships in ports in the territory of a Member State to use shore-side electricity or alternatively zero-emission technologies for on-board energy supply.
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2025, with the exception of certain Articles which shall apply from 31 August 2024.
