The Dutch government on Monday announced its plans to build a large scale production facility to convert wind power into hydrogen in the North Sea. The facility will have the capacity to produce 500 MW of green hydrogen per year and is expected to come online in 2031. The project marks the first time the Netherlands will produce green hydrogen offshore on a large scale. The government also has a goal to produce 4 GW of green hydrogen at onshore facilities by 2030.

The new hydrogen plant will be connected to an offshore wind farm, where the hydrogen then be transported to land by using an existing natural gas pipeline.

The government previously announced plans for two wind farms in the Wadden area, one to provide electricity to the Dutch grid and the other to generate electricity for hydrogen production. The government considers green hydrogen a vital fuel for the energy transition.

Dutch Minister of Climate and Energy Jetten said the government is accelerating plans for an offshore green hydrogen facility because it is becoming increasingly clear that the fuel is necessary for the sustainability of the industry and heavy transport. The energy crisis has also showed the need for self-sufficiency. “With this plan, we are a global leader,” Jetten said.

Jetten said he was pleased by local support and enthusiasm for the plan. “The province and municipalities are fully committed to a green economy in which the production of sustainable energy is central.”