Offshore Power for E-Fuels Conference: Boosting the Hydrogen Economy
Presentation on the user-pays principle for infrastructure utilization in the offshore power sector, focusing on the development of E-Fuels and the new hydrogen economy. Insights from projects on green ammonia and integrated energy islands are shared, highlighting the emerging Baltic Sea region as Europe's leading hydrogen valley.
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Presentation Transcript
User-pays principle ensuring the infrastructure utilisation A presentation to the Offshore Power for E-Fuels: Boosting the New Hydrogen Economy conference 12.11.2024 in P rnu, Estonia Berndt Schalin CEO | 1 3/11/2025 2024 @ FLEXENS
Short intro to Flexens FLEXENS PROJECT DEVELOPMENT CURRENT MARKET SEGMENTS Mobility H2 Industry | 3 3/11/2025 2024 @ FLEXENS
Insights from projects under development 300 MW Green Ammonia project Integrated X GW Energy Island project | 4 3/11/2025 2024 @ FLEXENS
Hydrogen route to market Our perspective PIPELINES Northern European hydrogen pipeline networks Nordic Hydrogen Route COD: 2030 (est) Nordic-Baltic Hydrogen Corridor COD: 2030 (est) Ammonia cracking, via maritime transport Baltic Sea Hydrogen Collector COD: TBA E-fuels supply via maritime transport: ammonia, methanol, methane, SAF SEA ROUTES | 5 3/11/2025 2024 @ FLEXENS
The opportunity and need | 6 3/11/2025 2024 @ FLEXENS
Existing infra and investment needs Current electricity grid in the region does not fully support the hydrogen economy and offshore wind Large investments are needed Current electricity grid in the region is not sufficient to transmit the large amount of power foreseen from the offshore wind potential Transmitting large amounts of energy is more efficient as a gas Also, the losses from the electrolysis does not need to be transmitted long distances if hydrogen is produced close to the renewable electricity production | 7 3/11/2025 2024 @ FLEXENS
The Baltic Sea region emerges as Europes leading hydrogen valley The offshore wind potential at attractive cost is well established The industrial headland in Europe has several industries in the hard to abate sectors where hydrogen is the least expensive alternative to the fossil path Current EU strategy has a plan for a total import of 10 million tonnes p.a. (https://energy.ec.europa.eu/topics/energy-systems- integration/hydrogen_en) The route to market for the hydrogen production potential creates the need for new infra Reading: https://interreg-baltic.eu/project/bowe2h/ | 8 3/11/2025 2024 @ FLEXENS
Infrastructure is key Vision of electrical interconnectors Hydrogen pipelines under development | 9 3/11/2025 2024 @ FLEXENS
Infra from the producer's perspective It s about the route to market and derisking the projects Route to market Especially the early projects need collaboration across the value chain Redundancy, security of supply Improving the business case Enabling more operational hours Risk mitigation Predictability of costs Redundancy, security of supply | 10 3/11/2025 2024 @ FLEXENS
Funding the infrastructure | 11 3/11/2025 2024 @ FLEXENS
Public-private models; user pays There are large allocations of private capital The principle of user fees is well known in several infrastructure sectors The principles for electricity grids is well established in EU and national regulation in the members states, but not yet sufficient for the new emerging system architectures Several discussion papers on the topic of needed regulation for new large scale offshore wind set-ups has been published recently by the North Sea Wind Power Hub We need to do the same for the Baltic Sea region New instruments for public sector participation in derisking investments in the hydrogen pipeline infrastructure will also be needed | 12 3/11/2025 2024 @ FLEXENS
How to finance Example: the plan in Germany The concrete plan for the first core net in Germany was approved by the federal government in October 2024 The financing will be based on user fees To bridge the low utilisation rate in the beginning the government has created a guarantee for an amortisation account to enable private investment | 13 3/11/2025 2024 @ FLEXENS
Contact details berndt.schalin@flexens.com +358 408 429 469 | 14 3/11/2025 2024 @ FLEXENS
Appendix | 15 3/11/2025 2024 @ FLEXENS
New study Grid Investment pathways to 2050 out Drafted by: Eurelectric and EY in collaboration with Imperial College London With the support of power grid companies and national electricity associations | 16 3/11/2025 2024 @ FLEXENS
