Discussion on offshore hydrogen production at the North Sea Offshore Summit

Jointly, the summit participants discussed the best ways to promote the development of this technology and the measures needed to mitigate risks. Furthermore, the importance of an effective tender design was examined, to select realistic bidders while leveraging the innovative capabilities of the supply chain.

The key insights from the discussion are summarized as follows:

Clear long-term goals and tangible short-term tender volumes: It was emphasized that the industry needs clear long-term goals and tangible short-term tender volumes at the national level to trigger the necessary investments in the supply chain and project development. This is crucial to ensure a timely contribution of this powerful option to Europe's decarbonization.

Advances in offshore electrolysis: The enhancement of offshore-specific aspects of electrolysis in current pilot projects is keeping pace with the maturation of large-scale onshore electrolysis. This underscores the positive development of this technology both on land and at sea.

Effective tender design: An effective tender design should include qualitative criteria to select the most realistic bidder, while maintaining some flexibility to allow the supply chain to contribute with innovations post-tender. This balance is critical for the success of offshore hydrogen projects.

Binding commitments before investment decisions: It was noted that transmission system operators (TSOs) often require binding commitments from future offshore producers for a share of the planned transport capacity before the final investment decision (FID). This ensures that the transport capacity is effectively utilized and that the projects are on a solid foundation.

The event provided valuable insights into the future of offshore hydrogen production and highlighted the significant role of this technology in the energy transition. We thank the German-Norwegian, German-Danish, and German-Dutch Chambers of Commerce for the invitation and support of this groundbreaking event.

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