The energy company, Equinor, has suspended planning for its hydrogen pipeline connecting Norway and Germany. This project, valued at between 4 and 6 billion euros, was seen as key to transporting blue hydrogen to Germany, but lack of solid demand and regulatory transparency has blocked progress.
Hydrogen pipeline suspension
The pipeline was to export hydrogen produced from Norwegian natural gas, using carbon capture and storage(CCS) technologies to reduce emissions. However, changes in German energy strategy and uncertainty about the use of hydrogen in industrial sectors, such as steel and power, have made the project not commercially viable at this stage.
Magnus Frantzen Eidsvold, Equinor’s representative, explained: “We cannot invest billions of euros without having secured markets and long-term contracts“. The company had originally signed an agreement with RWE to supply its plants with hydrogen, but these plans have been put on hold following the latest statements.
The Norwegian offshore pipeline operator, Gasscohad indicated that the project was technically feasible. However, it remains up in the air whether it will be developed without Equinor’s support. The planned capacity of the pipeline was 10 GW by 2038, which translated to transporting 2.6 million tons of hydrogen annually to the European market.
Despite this setback, Equinor will continue to explore other hydrogen projects in the hydrogen projects, particularly in theparticularly in the United Kingdom and the Netherlands, where market conditions are more favorable. In addition, RWE has indicated that its plans for hydrogen-ready power plants in Germany remain on track, although the hydrogen will have to be procured from within the continent.
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Source: Argus Media
Photo: Shutterstock
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