The Netherlands is committed to significantly increasing renewable electricity production, from mainly wind and solar, to 70% of the electricity supply by 2030. The potential of Dutch offshore wind is estimated at about 70 GW by 2050. Integration of such large amounts of variable, renewable power requires a holistic energy system design and technological innovations to avoid excessive volatility in energy balancing mechanisms. If not handled properly, the cost of expanding the power grid will be much higher than with the right approach. One of the solutions is the integration of hydrogen in the energy system, for instance, by producing hydrogen from offshore wind energy.
The existing wind energy and hydrogen systems are grid-following and grid-dependent. As a result, they depend on expensive and long-term reinforcement of the offshore and onshore grid infrastructure to continue functioning properly. Improving the power-to-hydrogen system will increase the balancing capacity of the grid and reduce hydrogen production costs. Furthermore, it contributes to a faster transition by decarbonizing industries such as agriculture, steel and chemical processes.