Mitsubishi plans 80,000 TPA GH2 plant – world’s largest – in Netherlands
Mitsubishi Corp plans to invest over $700 million to build one of the world's largest "green" hydrogen production plants in the Netherlands. The plant, at capacity of up to 80,000 tonnes per annum, will be almost 30 times larger than the largest hydrogen facility operating at the moment.
The hydrogen will be produced by electrolysis of water using electricity generated from renewable sources of power. Eneco Diamond Hydrogen --- a joint venture between Mitsubishi and its Dutch renewable energy subsidiary Eneco --- will handle production, with electricity generated from Eneco's large offshore wind farm used to power the electrolyzer.
Eneco has already submitted its planning application for the construction of the 'Eneco Electrolyzer' in Rotterdam's Europoort industrial area. Construction of the electrolysis plant is likely to begin in 2026, and the facility is estimated to start producing hydrogen from 2029. The company plans to sell the hydrogen output through its retail electricity sales network and also supply the gas to manufacturing and power businesses across Europe using pipelines.
Eneco CEO As Tempelman said in a statement: "Producing green hydrogen is essential for a successful energy transition. When direct electrification is not possible, green hydrogen is a good and sustainable alternative, both as a raw material and as a fuel. Investing in green hydrogen is an important part of our strategy and it pleases me that we can now take concrete steps towards this."
Green hydrogen is touted as a next-generation, carbon-free fuel source, but runs into cost hurdles. The production of green hydrogen costs €3-8 per kg, or $3.28-8.74 per kg in dollar terms, much higher than the €1-2 per kg cost for hydrogen derived from burning coal. Mitsubishi is aiming to reduce its costs through mass production of the fuel.
The company plans to use Europe as a testing ground to refine its know-how for commercialization of hydrogen in areas such as production and supply --- since the continent leads the world in development of green hydrogen --- and use its learning to expand hydrogen operations globally, the report said.
Europe is looking to increase its annual green hydrogen production capacity to 10 million TPA by 2030, as part of efforts to decarbonize its energy supply and decouple from Russian fossil fuels.
Japanese companies with advanced hydrogen technologies are looking at Europe for opportunities. Trading house Itochu and Osaka Gas have tied up with Danish hydrogen developer Everfuel and are expected to participate in a 3,000 TPA green hydrogen project in Denmark later this year.