Brussels funds for green hydrogen chain Canal Zone Zeeuws-Vlaanderen

7 December 2023

On Wednesday, 6 December, Deputy Jo-Annes de Bat presented a cheque for €647,436 for the 'Green Hydrogen Chain Canal Zone Zeeuws-Vlaanderen' project. This initiative aims to boost hydrogen usage through the collaboration of Brussels and the Province of Zeeland.

The project involves H4A and project partners, De Hoop Terneuzen, Syndus Group, De Pooter Olie, and Multraship Towage & Salvage in Terneuzen, developing a chain for locally produced green hydrogen. This hydrogen will be utilized by the project partners and local companies with heavy equipment, such as trucks, forklifts, construction equipment, excavators, and ships.

Consortium

The project came to fruition through the efforts and collaboration of five regional (family) businesses: De Hoop, Multraship, Syndus Group, De Pooter Olie, and H4A, forming a consortium. The project kickstarts with support from OPZuid and the Province of Zeeland.

Green Hydrogen Chain

The aim is to develop a chain for locally produced green hydrogen in Terneuzen, catering to project partners and local companies with heavy equipment. For such heavy-duty applications, where electrification alone is not viable due to increasing network congestion, hydrogen stands as the only realistic, sustainable alternative.

VoltH2 is constructing a hydrogen plant in Terneuzen, set to deliver green hydrogen from 2026, powered by green electricity from a Zeeuwwind turbine on the Axelse Vlakte. Thus, locally produced green hydrogen will become available in Terneuzen for local businesses, though some bottlenecks first need resolution.

Hydrogen Refuelling Station Construction

A primary bottleneck involves distribution to end-users. Hence, a hydrogen refuelling station, accessible to both vehicles and ships, is being built near the VoltH2 plant, ready to supply green hydrogen from 2026. Necessary permits for converting an existing station to hydrogen have been obtained.

Cost of Green Hydrogen

Initially, locally produced hydrogen will cost around €35/kg, significantly higher than current prices at other stations. The price drops to a market rate of €15/kg with a consumption of 1,000 kg/week. Overcoming this catch-22 requires creating sufficient demand for green hydrogen first.

Project Goals

The project aims to eliminate these bottlenecks, pioneering the use of hydrogen-powered heavy equipment. In collaboration with HZ University of Applied Sciences and Impuls Zeeland, the consortium will test, develop, and implement the use of green hydrogen for heavy machinery in practice. This leads to the establishment of the Netherlands' first hydrogen station serving both vehicles and vessels.

Pilot

A hydrogen pilot will be launched by the project partners to share knowledge and experiences, aiding new hydrogen users in the region with the transition to hydrogen-powered equipment, thus facilitating quicker scale-up to 1,000 kg per week. Achieving this milestone by 2027 will render a profitable business case across the production, distribution, and consumption chain.

European Support

Co-financing from OPZuid mitigates the initial unprofitable peak and reduces operational risks for green hydrogen, enabling the project partners to transition to locally produced green hydrogen. This acceleration project represents the final step needed for this transition.