HyCC Aims to Lead Dutch Industry in Green Hydrogen Transition
Netherlands, Tuesday, 11 March 2025.
HyCC is implementing green hydrogen solutions to decarbonize tough industries like petrochemicals and steel, crucial for the Netherlands’ carbon reduction goals.
Strategic Development and Project Pipeline
HyCC, which emerged as a spin-off from Nobian’s chemical operations in 2021, is rapidly developing multiple strategic projects across the Netherlands and Germany [1]. The company’s ambitious project pipeline includes facilities in Delfzijl (20 MW and 100 MW), Amsterdam (500 MW), Rotterdam (250 MW), and Wittenberg near Berlin (500 MW) [1]. The company’s first major milestone, the Djewels project in Delfzijl, is approaching a crucial investment decision in early 2025 [1].
Infrastructure Challenges and Market Development
Chief Development Officer Joost Sandberg highlights the complex nature of establishing green hydrogen infrastructure: ‘We are dependent on new hydrogen infrastructure that still needs to be built. A lot of elements need to come together and this dependence makes it complex, but also interesting’ [1]. This challenge is particularly significant given that current global hydrogen production remains heavily dependent on fossil fuels, with low-emissions hydrogen accounting for less than 1 Mt in 2023 [6].
Strategic Location and Future Production
Delfzijl has been strategically chosen as a key location due to its advantageous access to sustainable electricity sources, including onshore and offshore wind power and hydropower from Norway [1]. The facility’s production is scheduled to commence in the second half of 2027, supported by funding from multiple sources including the Wadden Fund, Europe (FCH-JU), and the Dutch government [1]. This timeline aligns with broader European initiatives, as evidenced by recent regulatory developments and funding approvals [6].
Market Challenges and Future Outlook
A significant hurdle facing the project is the current electricity tariff structure in the Netherlands, which results in notably higher production costs compared to neighboring countries, with a difference of almost €2 per kg of hydrogen [1]. The industry faces additional challenges with the HyWay 27 project’s delay from 2027 to 2032, which could impact market development [1]. However, positive government support is evident through the allocation of €3 billion in subsidies for large-scale renewable hydrogen production through electrolysis in 2024 [1].