'Largest in Europe' | Air Products announces blue hydrogen plant at Rotterdam linked to Dutch offshore CCS network
The US industrial gases firm will supply H2 to existing customers including ExxonMobil’s refinery
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However, this is likely to have been delayed by the exit of prospective carbon storage operators Equinor and Vår Energi in February this year, with a new operator, PGNiG, unlikely to be approved by regulators before December.
The project, which reached final investment decision (FID) earlier this month, has already contracted all 37 million tonnes of storage capacity to four industrial emitters in Rotterdam that had signed joint development agreements: Air Products, fellow industrial gas company Air Liquide, and oil majors Shell and ExxonMobil.
These four companies were in 2021 awarded €2.1bn ($2.26bn) in grants via the Dutch government’s SDE++ scheme, covering the cost gap between the price of the EU’s carbon credits on the Emissions Trading System and the costs involved in developing CCS infrastructure.
While the industrial gases firm notes that the blue hydrogen plant is backed by a long-term contract with ExxonMobil, it does not provide further details on this agreement.
“Air Products has been actively present and investing in Rotterdam for decades,” said the firm’s chief operating officer Samir Serhan.
“Industrial companies here are continually looking for ways to realise synergies, create economies of scale, drive energy efficiencies and ultimately decarbonise. This project fulfils that demand.
CCS is also controversial, with critics pointing to a number of large projects failing to deliver on promised storage rates, the continued dependence on fossil fuels, and a potential lack of mitigation around upstream methane emissions.