Norwegian state-controlled energy company Equinor has abandoned its plan to build a hydrogen pipeline from Norway to Germany. The project, announced in January 2023 by the Norwegian and German governments, aimed to produce and transport up to 10 gigawatts of blue hydrogen per annum.
Project Overview
- Equinor and German utility RWE were set to build the multibillion-euro project.
- The pipeline was deemed unviable due to high costs and lack of demand.
- The project included producing blue hydrogen from natural gas with carbon capture and storage.
Collaboration on Gas-Fired Power Plants
- Equinor and RWE will still collaborate on building 3 GW of “hydrogen-ready” gas-fired power plants in Germany by 2030.
- The hydrogen will be procured on mainland Europe instead of being exported from Norway.
Project Costs and Challenges
An Equinor spokesman said the company decided to discontinue the early-phase project as the hydrogen pipeline proved unviable. The decision also implies that the associated hydrogen production plans have been put aside. RWE confirmed it would not progress the project without Equinor’s involvement.
The pipeline itself was expected to cost approximately €3 billion ($3.33 billion). The total cost of producing blue hydrogen and storing the captured carbon dioxide was estimated to be in the “tens of billion euros,” according to Equinor chief executive Anders Odepal last year.
Lack of Long-Term Agreements and Market Demand
The Equinor spokesman emphasized that the company cannot make such investments without long-term agreements and established markets. The initial plan was for the pipeline to transport natural gas before transitioning to blue hydrogen and eventually green hydrogen.
Government Reactions and Alternative Plans
The decision is seen as an embarrassment for the Norwegian and German governments. Germany engaged in intensive talks with the Norwegian government over the weekend following the announcement.
An official from the German Ministry for Economic Affairs & Climate Action revealed a new plan. The plan involves converting Norwegian natural gas into blue hydrogen in the Netherlands and shipping the captured CO2 back to Norway for storage. However, there are currently no direct gas pipelines between Norway and the Netherlands, although pipelines exist from Norway to Belgium and Germany.
Conclusion
The cancellation of the Norway-Germany hydrogen pipeline project highlights the challenges in developing large-scale hydrogen infrastructure. High costs and uncertain demand remain significant hurdles for such projects, despite the growing interest in hydrogen as a clean energy solution. As countries continue to explore hydrogen’s potential, careful planning and coordination will be essential to ensure the viability and success of future projects.
Read More: Hyundai and Skoda Partner to Advance Hydrogen Mobility
