Equinor has abandoned plans to export so-called blue hydrogen to Germany, citing rising costs and a lack of demand.
Norway’s Equinor and Germany’s RWE agreed more than two years ago to set up a complete supply chain for carbon-free hydrogen, a move that was seen at the time as a clear step towards reducing harmful emissions.
However, the decision to halt the project could come as a huge blow to those who see blue hydrogen as an easy step on the road to decarbonisation.
The plans include the production of blue hydrogen, which can be exported to hydrogen-ready gas-fired power stations in Germany via the world’s first offshore hydrogen pipeline.
But all these plans have now been halted because the “hydrogen pipeline has proven not to be viable,” a spokesperson said.
They added that Equinor, Norway’s state-owned multinational energy company, “has decided to halt this project in its initial phase”.
Hydrogen has long been seen as a very useful potential energy source because world is switching to renewable energyand is suitable for heavy vehicles that travel long distances without recharging.
To complete the pipeline, support from both Norway and Germany was needed. Equinor executives estimate that the total supply chain costs could run into tens of billions of euros.
In February, the UK announced it would build its first industrial-scale blue hydrogen plant. The plant will produce millions of litres of the fuel at one of the UK’s largest refineries, to be built in Cheshire, in the north of England.
The UK government will invest a further £21 million ($26.57 million) in seven hydrogen projects across the country as it ramps up production of the fuel to meet net-zero targets. However, most companies will produce blue hydrogen.
Four of the selected projects will develop plans for new hydrogen production factories for possible industrial use. The factories will supply fuel to companies in various sectors, from pharmaceuticals to automotive, the government said in a press release at the time.
“Equinor abandons plans to export blue hydrogen to Germany” was originally created and published by Offshore technologya brand of GlobalData.
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