Companies can apply for hydrogen storage at Zuidwending starting in June
Veendam, the Netherlands - Gasunie subsidiary HyStock, pilot project from ESNL member EnergyStock announces that beginning this June, companies will have the opportunity to bid for storage capacity at the future hydrogen storage facility at Zuidwending. Through an open-season process, HyStock intends to identify the demand for hydrogen storage and determine the capacity needed.
The salt cavern at Zuidwending, located near Veendam, is expected to become the first large-scale hydrogen storage facility in the Netherlands. HyStock, a subsidiary of Gasunie responsible for developing the caverns, has the ambition to be ready for the operational start of the storage facility in 2028. In addition, shortly after 2030, it plans to construct three more similar storage sites at the same location, although no final investment decisions have yet been made regarding this expansion.
With the expected growth of the hydrogen economy, the demand for large-scale hydrogen storage is likely to increase. According to a feasibility study by EBN and TNO held in 2021, hydrogen storage will play a crucial role in maintaining the supply-demand balance in the future energy system.
The study indicates that large-scale hydrogen storage will be needed as early as 2030. In that context, underground salt caverns are seen as promising storage sites. The report estimates that a hydrogen storage capacity of 1-4 salt caverns will be needed by 2030. It is essential that the development of storage capacity be treated in conjunction with the development of the hydrogen supply chain and associated transportation infrastructure.
In order to make a final investment decision, HyStock needs more accurate information about the demand for hydrogen storage in Zuidwending. Therefore, the company announced that this June it will conduct a open-season procedure will start. This announcement aims to avoid delaying the investment decision for the HyStock project. By giving market participants the opportunity to express their interest now, the project can go ahead as planned. The "Open Season" provides a clear framework in which binding contracts can be concluded, giving both HyStock and market parties certainty about future hydrogen storage in Zuidwending.
Details on allocation of storage capacity and enrollment by interested parties are expected to become clear soon. Energy Storage NL will communicate about this in the event of new developments.
The development of storage capacity at Zuidwending offers companies the opportunity to prepare for the growing need for sustainable molecule storage in the Netherlands. This marks an important step in the development of CO2-free flexible capacity and, in time, a fully sustainable energy system.
