Ørsted and fertilizer company Yara, plan to jointly develop a 100 MW wind powered electrolyser plant for renewable hydrogen production which will be used for ammonia production in Yara’s Sluiskil plant, located in the Dutch province of Zeeland.
The electrolyser plant will be based on renewable energy supply from Ørsted’s offshore wind farms Borssele 1&2. The green hydrogen will replace fossil-based hydrogen in the production of amonia. Around 75,000 tons of green ammonia could be produced with the green hydrogen annualy. This resembles approximately 10% of the capacity of one of Yara’s ammonia plants in Sluiskil.
“Green ammonia can be essential to enable sustainable food production, in addition it is emerging as the most promising carbon neutral energy carrier for several energy applications, such as decarbonized shipping fuel. Teaming up with Ørsted in this project in the Netherlands represents a major step forward in enabling Yara to deliver on its strategic ambitions”, says Terje Knutsen, Executive Vice President and head of Farming Solutions in Yara.
Over 100,000 tonnes of CO2 could be reduced per year with the project. This is the equivalent to taking 50,000 conventional cars off the road, Ørsted said. The project fits the hydrogen roadmap of the Smart Delta Resources cluster in Zeeland, and resembles an important step in the scaling of renewable hydrogen in the Netherlands towards 3-4 GW by 2030, according to the company.
“Ørsted is committed to investing in renewable hydrogen production at scale, and with the right support in place this joint flagship project between Yara and Ørsted will not only lead to a significant reduction of CO2 emissions, but also help mature the technology for the wider decarbonisation of European industry”, says Martin Neubert, Executive Vice President and CEO of Ørsted Offshore.
Public co-funding required
Green hydrogen production is currently more expensive than fossil-based hydrogen. Ørsted and Yara will therefore now seek public co-funding for the development and construction of the 100MW electrolyser facility to supplement private investments.
Subject to sufficient co-funding, a confirmed business case and with the right regulatory framework in place, a final investment decision to build the new plant could be taken late 2021 or early 2022. The project could be operational in 2024/2025.