HyCC pushes back planning for green hydrogen project H2eron due to market conditions

12 December 2023

HyCC has pushed back the planned realization of its green hydrogen project H2eron in Delfzijl to 2028 at the earliest, due to slower development of the hydrogen market and the rising costs of hydrogen projects. 

Marcel Galjee, Managing Director of HyCC: “Green hydrogen remains vital to decarbonize our industries and reach Dutch and European climate objectives. At the same time, the regulatory framework is taking more time and current market conditions are not yet at the levels required to execute the project at the desired scale. In the interest of the project, we are therefore forced to adjust the setup and schedule accordingly.”

H2eron will produce green hydrogen from water and renewable power at the Chemical Park Delfzijl, where the hydrogen can be used for the production of Sustainable Aviation Fuels (SAF), for mobility and by various chemical manufacturers to reduce emissions. 

The European Renewable Energy Directive (RED) III stipulates the use of green hydrogen in industrial use and for fuels. However, these rules are still in the implementation phase at the national level and do not lead to a mature green hydrogen market until around 2030. In addition, the cost of development and renewable power have increased in recent years. 

In light of these developments, HyCC has adjusted the planning and is looking to increase the capacity of H2eron up to 50 megawatt (MW) to reduce the cost per kilogram of hydrogen produced. 

The company is currently assessing if agreements with suppliers need to be adjusted to the changed planning and has decided to cancel the purchase order for 40 MW of electrolysis stacks from Nel. HyCC has entered into talks with the Norwegian company to use their alkaline elektrolysers in the new 50 MW setup instead.