Equinor has dropped its plans to export blue hydrogen from Norway to Germany, according to reports.
The Norwegian oil and gas major previously agreed with RWE to build a hydrogen supply chain to decarbonise power plants in Germany. However, H2 View understands the plans have been scrapped due to insufficient demand, inadequate regulatory framework and high prices.
The total cost of the pipeline was reported to cost around €3bn ($3.35bn), whilst the total supply chain could have also reached the “tens of billion euros range”.
Blue hydrogen would have been transported via an offshore pipeline, with the two companies jointly owning new hydrogen-ready gas power plants (CCGTs) in Germany, where the energy carrier would have been used.
Read more:Hydrogen power plants, production, and pipelines: Equinor and RWE sign agreement
Reuters has reported that the two companies still intend to build blue hydrogen production facilities in Norway and hydrogen CCGTs in Germany. However, hydrogen will be procured more locally and not from Norway.
German and Norwegian officials have been discussing new plans for the hydrogen, the news agency said.
It also reported that the new plan could include converting Norwegian gas into blue hydrogen in the Netherlands and shipping the captured CO2 back to Norway for storage.
An RWE spokesperson stressed to H2 View that the planned pipeline was not an RWE initiative, but rather an “infrastructure project which needs a strong support of the respective federal countries.”
The spokesperson added that the hydrogen-ready power plans in Germany are still reliant on a political framework from the German government and they could go into operation from 2030 at the earliest.
“It remains to be seen which type of hydrogen [blue and green] from which countries will later be used to supply the hydrogen core network, which is also yet to be established throughout Germany,” they continued.
“In any case, a switch to green hydrogen is due to the current plans of the government not planned until 2038. According to the German government’s current plans, which are still in the consultation process, RWE continues its preparations for possible participation in the auction regime for hydrogen-ready gas plants.”
H2 View has also reached out to Equinor for comment on the scrapped initiative.
Last year, Anders Opedal, CEO and President of Equinor, said the pipeline collaboration with Germany will “strengthen the long-term energy security for Europe’s leading industrial country.”
He added, “At the same time [it will] offer a viable route to a necessary energy transition for hard to abate industries. The collaboration has the potential to develop Norway into a key supplier of hydrogen to Germany and Europe.”
The Norwegian Prime Minister, Jonas Gahr Støre, announced a renewed and deepened cooperation between the two countries on hydrogen in January 2023. He then revealed plans to explore establishing a pipeline for hydrogen exports.
Read more:Germany and Norway strengthen hydrogen ties, plans for large-scale hydrogen pipeline
Newsletters
H2 View knows just how much hydrogen news there is to keep on top of. Keep up to date on the latest developments across the industry with our daily newsletter that will give you the top five stories of the day, straight to your inbox.
Don’t forget we also have our weekly newsletter which includes a round-up of the past seven days’ hydrogen highlights, including not only news but also interviews, features and analysis.
Sign up for our newsletters here.
