Executive Viability Abstract
This feasibility study evaluates the integration of large-scale PEM electrolysis with offshore wind farms in the Dutch North Sea. With the Netherlands targeting 70 GW of offshore wind by 2050, hydrogen production offers a critical solution to grid congestion and energy storage, positioning the region as a primary European green hydrogen hub.
Return on Investment
15.5%
Payback Span
9.5 years
Net Present Value
€420 Million
IRR Index
14.2%
## Market Analysis
The Netherlands currently consumes approximately 800,000 tonnes of grey hydrogen annually, primarily in the Rotterdam industrial cluster. EU mandates (RED III) and Dutch national targets require a transition to green hydrogen. Demand is projected to grow via the 'Delta Corridor' pipeline to Germany. Competitive positioning is high due to existing gas infrastructure repurposing potential.
## Capex Summary
Estimated CAPEX for a 500MW integrated project: €1.2 Billion.
- Offshore Wind Turbines: €650M
- Electrolyzer Stack (PEM): €300M
- Offshore Platform & Infrastructure: €150M
- Subsea Hydrogen Pipelines: €100M
## Revenue Model
Revenue is derived from three primary streams:
1. Fixed-price Offtake Agreements (PPAs) with industrial refineries.
2. Sale of Renewable Energy Guarantees of Origin (GOs).
3. Provision of grid balancing services to TenneT during periods of low wind variability.
## ROI Summary
Expected ROI is 15.5% over a 25-year lifecycle. The project benefits from SDE++ subsidies and EU 'Hydrogen Bank' funding, which bridge the gap between grey and green hydrogen production costs.