Evaluating The Offshore Wind Business Case and Green Hydrogen Production: A Case Study of A Future North Sea Offshore Grid

The European Union aims to increase its climate ambition and achieve climate neutrality by 2050. This necessitates expanding offshore wind energy and green hydrogen production, especially for hard-to-abate industrial sectors. A study examines the impact of green hydrogen on offshore wind projects, specifically focusing on a potential future North Sea offshore grid. The study utilizes data from the TYNDP 2020 Global Ambition scenario 2040, considering several European countries. It aims to assess new transmission and generation capacity utilisation and understand the influencing factors. The findings show that incorporating green hydrogen production increases offshore wind utilization and capture prices. The study estimates that by 2040, the levelized cost of hydrogen could potentially decrease to €1.2-1.6/kg H2 assuming low-cost electricity supply and declining capital costs of electrolysers. These results demonstrate the potential benefits and cost reductions of integrating green hydrogen production into North Sea offshore wind projects.