Equinor Scrapped Master Plan to Export Blue Hydrogen to Germany

SEATTLE (Oil Monster): Norway-based petroleum refining major Equinor has cancelled its plan to export blue-hydrogen to Germany, especially due to excessive costs associated with it and also due to insufficient demand.

It should be noted that the company signed a Memorandum of Understanding (MoU) with German RWE in early 2022 to establish a hydrogen supply chain for German power plants, with the goal of reducing greenhouse gas emissions.

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Equinor intended to transfer blue hydrogen produced in Norway to hydrogen-ready gas power stations in Germany via an offshore hydrogen pipeline. However, the hydrogen pipeline has proven to be unfeasible. According to Magnus Frantzen Eidsvold, Equinor's spokesperson, the business was obliged to stop the project in its early stages.

According to estimates, the complete supply chain will cost tens of billions of dollars, with the pipeline alone likely to cost over 3 billion euros, making it financially impossible. The corporation noted the dangers associated with such a big expenditure, particularly in the absence of long-term agreements and markets.

Eidsvold, on the other hand, stated that it will continue to work with RWE on developing hydrogen-ready gas power facilities in Germany. However, the hydrogen will be sourced locally rather than exported from Norway.