The Techno-Economic Feasibility of Green Hydrogen Storage in Salt Caverns in the Dutch North Sea

Abstract

This thesis aims to analyze the techno-economic feasibility of integrating a salt cavern storage system into a green hydrogen production system in the Dutch North Sea, with the objective to provide a constant green hydrogen supply to the industry sector. To this end, the potential for creating salt caverns in the North Sea was examined and the prospected theoretical storage capacity was evaluated and compared to the required storage capacity and the costs of the system were assessed.

The simulations reveal that a 19.8 GW wind park in combination with an 8.65 TWh salt cavern storage system would be sufficient to provide a constant hydrogen supply to a 10 GW pipeline. Four locations in the Dutch North Sea were identified where a group of adjacent salt caverns could be created with a collective storage capacity of at least the required 8.65 TWh. Although further research is required, from this analysis it is concluded that creating a salt cavern storage system of sufficient magnitude may indeed be technically feasible.

The incremental cost of adding to offshore hydrogen production an 8.65 TWh salt cavern storage system is estimated at €5.4 billion, which translates to an addition of 0.17 €/kg to the LCOH for offshore green hydrogen production. Optimization of system design and the financial state of affairs may reduce costs for the storage system and thereby the total LCOH for offshore hydrogen production and storage.