Exploration of the effects of (partially) replacing Dutch fertiliser and iron and steel production with imports
report
In this report an exploration is presented on the effects of renewable hydrogen imports on the fertiliser and iron and steel sectors. In the coming decades the Dutch iron and steel and fertiliser industries will need to reduce emissions in order to meet European and national climate targets. For both sectors renewable hydrogen (from electrolysis based on renewable electricity) forms an important part of the long-term decarbonisation strategy. The Netherlands plans to have a significant domestic electrolysis capacity to produce renewable hydrogen. Yet, domestic production could be insufficient to meet the demand for hydrogen requiring the import of renewable hydrogen. It could also prove cheaper to import renewable hydrogen from regions with more geographically favourable conditions. In particular when it is cheaper to import renewable hydrogen, the question arises whether it is also economically favourable to (partially) relocate the production of fertilisers or iron and steel to the country with low-cost renewable hydrogen production. In such a scenario finished or semi-finished products are imported instead of renewable hydrogen (carriers). A consequence would be the (partial) relocation of industrial supply chains to regions with low-cost renewable hydrogen production. Relocation as referred to in this report does not require the same company to have both production abroad and in the Netherlands. The company in the Netherlands can also outsource production or acquire (semi-)finished products from the international market.
Topics
TNO Identifier
995338
Publisher
TNO
Collation
56 p.
Place of publication
Petten