H2Tech - Q2 2021 - 36

BLUE HYDROGEN PRODUCTION
Recently, Norway decided to build a
large CO2 storage facility, referred to as
the " Northern Lights " project (FIG. 3).
CO2 captured from industry and blue H2
production facilities in Norway and other
European countries will be transported
by ship or pipeline to a CO2 terminal on
the coast of Norway. From the terminal,
the CO2 will be piped offshore and then
injected into a subsea reservoir. The ini-

tial investment and operation costs for
the Northern Lights project are estimated at €2.5 B.
Transportation of H2. A major challenge for the market penetration of H2
is the high cost for distribution and storage. Compressed and liquified H2 contained in tanks is not very cost-efficient
due to the low density of H2. Decentral-

TABLE 1. Estimated costs of large-scale, competitive blue H2 production
and transportation
Cost item

Estimated cost

H2 production cost (including CO2 capture)

€1.2/kg of H2

CO2 transport and storage cost

€0.3-€0.5/kg of H2

Total production cost

€1.5-€1.7/kg of H2

Hydrogen transportation from Norway to Germany/the Netherlands
Total production and transportation costb

€0.08/kg of H2
€1.7/kg of H2

Natural gas price assumption: €0.12/sm3
b
Net cost, excluding ﬁnancing cost, contingency cost, etc.

FIG. 3. Northern Lights CO2-capture project details. Source: Equinor.

Existing gas pipeline (40 in., 924 km)
converted to H2 service
Kollsnes

New H2 pipeline (42 in., 800 km)
to transport 3.5 MMtpy of H2
Kollsnes

Zeepipe 2B

CO2 storage

Kårstø

Grenland
Tee station

Draupner
Potential branch
line 10-16-in.
New H2
pipeline
40-42-in.

Europipe 1

Dorsum
€0.05/kg of H2

Gothenburg

Q2 2021 | H2-Tech.com

34-in. CO2 pipeline
Norwegian
gas to EU

Dorsum
€0.07/kg of H2

FIG. 4. Example costs of gas pipelines for efficient H2 transportation.

New pipeline (34 in., 800 km)
for CO2 return to Norway

ized, small- and medium-scale production of green H2 might be advantageous
in such cases.
However, centralized, large-scale, blue
H2 production and transportation in
large-diameter pipelines is very cost-efficient. As an example, the author's company has studied the production of blue
H2 for the European market, based on
Norwegian natural gas. The study examined whether the H2 should be produced
in Norway close to CO2 storage and then
transported in existing or new gas pipelines, or if the H2 production plant should
be located close to the market and the
CO2 returned to a storage facility. Three
alternatives are illustrated in FIG. 4.
The option on the left in FIG. 4 shows
an existing pipeline, Zeepipe 2B/Europipe
1 (40 in., 924 km), redesigned from natural gas to H2 service. The middle option
shows the construction of a new, 42-in.,
800-km H2 pipeline to transport 3.5 MMtpy of H2. The option on the right assumes
a large-scale H2 plant based on Norwegian
gas, placed in the Netherlands or Germany, along with a CO2 return line (34 in.,
800 km) to a Norwegian storage facility.
Estimated costs for the three alternatives show that the cost of transporting
large volumes of H2 to the EU is very
low for all cases, at less than €0.08/kg
H2. Estimates for the pipeline transportation cost are based on a novel H2 pipeline design that allows the use of existing
subsea pipelines with a minor reduction
of design pressure. The author's company carried out the original design of the
Zeepipe 2B gas pipeline and used this
knowledge to theoretically redesign the
subsea pipelines for high H2 pressure and
flow. Other European studies indicate
approximately the same potential for H2
distribution networks.
The total production and transportation cost for Norwegian blue H2 to Europe
is estimated at approximately €1.7/kg of
H2. Although some costs (financing costs,
contingency costs, etc.) are not factored,
the estimated result promises a competitive, clean energy solution for the energy
transition in Europe and elsewhere.
Major markets for blue H2. Future

Dorsum
€0.10/kg of H2

markets for blue H2 solutions are regions
with access to natural gas and geology for
CO2 storage. Other regions that presently import fossil energy may be importing
H2 in the future. Long-distance pipeline

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