Assessing the Opportunity and Feasibility of Offshore Green Hydrogen Production for our Global Engineering Client
Quick overview
Our global engineering client aimed to evaluate the feasibility of offshore green hydrogen production. The client’s requirements included:
- Assessing competitiveness of hydrogen production hubs in strategic locations.
- Analysing global key markets for potential hydrogen demand.
- Developing a comprehensive understanding of the overall landed cost of hydrogen.
- Factoring in different storage and transportation methods: liquefaction, conversion to ammonia, and sub-sea pipelines.
Client success details
The support and insights provided by FutureBridge enabled the client to evaluate the cost competitiveness of offshore hydrogen (H2) production in relation to the landed cost at the consumer end. Our analysis answered several of our client’s critical business questions including:
 Offshore hydrogen production in most cases becomes cost-competitive to the onshore route once theoffshore wind + hydrogen farms are about 70-100 km beyond the shore |
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The engagement involved a comprehensive approach to evaluating viable pathways for green hydrogen production. It encompassed the following crucial components:
- Identifying offshore regions/locations with the most favourable offshore electricity production from a hydrogen production perspective
- Studying all the relevant hydrogen roadmaps for the specific regional hotspot and estimating the potential demand for green hydrogen at the regional hotspot level
- Determining LCOH of offshore green H2 (offshore renewable energy based) for identified regional hotspots
- Determining the tipping point in terms of distance from shore where offshore hydrogen becomes competitive to onshore hydrogen based on energy transfer dynamics and offshore platform.
In this endeavour, FutureBridge assisted the client in evaluating the competitive landscape of hydrogen production centres across regions such as Australia, Africa, and South America, as well as key markets spanning Europe, the US, Japan, and Korea. Additionally, a well-defined perspective emerged regarding the landed cost of hydrogen, encompassing diverse storage and transportation options, including liquefaction, conversion to ammonia, and sub-sea pipelines.
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