North Sea (Photo by Toria Tomlinson on Unsplash)

North Sea transforms: Decommissioned oil hub pivots to Green Hydrogen production

A decommissioned oil platform in the North Sea is being converted into the world’s first offshore green hydrogen plant, with ...

Facebook
LinkedIn
X

A decommissioned oil platform in the North Sea is being converted into the world’s first offshore green hydrogen plant, with the aim to harness the wind that previously hampered drilling operations to generate electricity and perform electrolysis in the middle of the ocean. This in turn will send hydrogen through existing pipelines that previously transported natural gas to the coast of Norway.

According to the AquaVentus consortium, the North Sea is transitioning from Europe’s largest oil field to one of the continent’s main green hydrogen production hubs.

The AquaVentus consortium comprises over a hundred companies, research institutes, and energy infrastructure operators, including industry giants such as Shell, RWE, Gasunie, and Equinor. The consortium aims to establish up to 10 gigawatts (GW) of offshore electrolysis capacity between Helgoland island and the Dogger Bank by 2035, with an estimated annual production of up to 1 million tonnes of green hydrogen.

Hydrogen Transport via Repurposed Pipelines

The strategy capitalises on the North Sea’s extensive network of pipelines, developed over five decades of oil and gas exploration. As some oil and gas fields deplete, these pipelines become candidates for repurposing, offering a potentially more efficient alternative to building new electrical transmission lines.

The AquaDuctus project, a dedicated pipeline over 400 kilometres long, has been approved by Germany’s Federal Network Agency in October 2024 as part of the future national hydrogen network. Classified as a European Project of Common Interest, AquaDuctus is projected to transport hydrogen equivalent to 20 GW, integrating offshore production with the European mainland and emerging onshore hydrogen infrastructure.

While transporting energy via hydrogen pipelines can offer benefits over electrical cables, particularly for long distances and lower channel utilisation, technical challenges remain. The smaller hydrogen molecule can cause embrittlement in certain types of steel, necessitating thorough assessment of pipeline integrity for high-concentration hydrogen transport.

Offshore Production and Cost Considerations

Converting decommissioned offshore platforms into hydrogen production units offers an alternative to the costly process of dismantling. Decommissioning an offshore platform can incur significant expenses, with overall liabilities for the UK North Sea estimated at £44 billion (approximately US$55 billion) for the remaining scope. Repurposing existing platforms, which already possess foundations, accommodation, support systems, and pipeline connections, can reduce deployment costs for new electrolysis hubs.

Offshore electrolysis directly harnesses wind energy, reducing transmission losses associated with bringing electricity onshore before conversion. The process involves desalinating seawater for electrolysers, a technology already proven in maritime operations.

Despite technological advancements, the economic viability of green hydrogen production currently faces high costs. BloombergNEF projects green hydrogen prices, which currently range from $3.74/kg to $11.70/kg, to fall to between $1.60/kg and $5.09/kg by 2050.

This highlights a continued reliance for subsidies, regulatory incentives, and further technological cost reductions for large-scale implementation.

The ambition to transform the North Sea into a clean energy powerhouse hinges on overcoming regulatory, logistical, and technical hurdles, alongside achieving industrial scale and further cost reductions.

Related Articles

Oil slide offers potential cost relief for UK motorists and businesses
Swiss firm secures contract to modernise automation systems at North Sea’s Buzzard Field
Signs that Rosebank nears production as key vessel arrives
BP’s North Sea rig deal exposes growing UK-Norway energy policy divide
Oil Rigs at Sunset
Aberdeen University research highlights West of Shetland oil reserves
Reports of potential North Sea asset deal between BP and Ithaca Energy

Other Articles from ABN

Subscribe to our Daily Newsletter

Why? Free to subscribe, no paywall, daily business news digest.