The Port of Rotterdam Authority has agreed with the South Australian Government to conduct a feasibility study of importing green hydrogen to Rotterdam from South Australia.
The port authority believes that shipping costs account for a small share compared to the total costs as the major costs components are production, carrier production or liquefaction and storage. Therefore, renewable energy abundance in South Australia can make hydrogen very competitive compared to making it in Europe.
Dan Van Holst Pellekaan, SA Minister for Energy and Mining, said, “The South Australian Government’s ambition is to become a national and international exporter of clean power, through new power interconnectors and carriers such as hydrogen.”
South Australia is now the country first state to enter into such an agreement with the Port of Rotterdam. South Australia is rich in renewables and generates 60% of its power from wind and solar power. Moreover, one out of three South Australian homes has rooftop solar, while about 3% of homes using home batteries installed or committed to home power storage. It is also supporting green hydrogen production projects, with funding of AU$ 15 million (US$ 11.4 million), which AGIG is carrying out at Tonsley, H2U at Cultana and Neoen.
Allard Castelein, CEO Port of Rotterdam, said, “Europe will remain a net importer of energy. However, it will gradually shift from grey to green. The Port of Rotterdam wants to facilitate this shift by stimulating the development of new supply chains of hydrogen.”
The port has ambitious plans for hydrogen and has been conducting similar feasibility studies regarding the production and shipping of hydrogen with many countries, including Iceland, Portugal, Morocco, Uruguay, and Chile.
On 23rd March 2021, Transhydrogen Alliance was established, which saw Proton Ventures (a technology company), Trammo (a trading company) and Varo (an energy company) signing a memorandum of understanding (MOU) to cooperate on the production and import of green hydrogen and green ammonia to Europe via Rotterdam. The Port of Rotterdam Authority said it supports the project and will set up an import terminal in Rotterdam.
The Alliance is looking into making green hydrogen using solar and wind energy and then importing it in the form of ammonia to Europe by as early as 2024. The aim is to import nearly 0.5 million tonnes/year of green hydrogen (equivalent to 2.5 million tonnes/year of ammonia) to Europe through Rotterdam.