Equinor Cancels Blue Hydrogen Export Plans to Germany Amid Low Demand

Core Insights - Equinor ASA has abandoned its plans to export blue hydrogen to Germany due to high costs and insufficient demand [1][2] - The initial partnership with RWE aimed to create a hydrogen supply network to reduce greenhouse gas emissions in German power plants [1][2] Cost and Demand Analysis - The projected cost of the entire supply chain for blue hydrogen production was estimated to reach "tens" of billions of euros, with the pipeline alone costing around €3 billion ($3.35 billion) [2] - Without firm long-term commitments from European buyers, Equinor could not justify the continuation of the project [2][3] Project Viability and Future Focus - RWE clarified that while it was not responsible for the hydrogen pipeline, it required support from both Norway and Germany for the project [3] - Equinor confirmed the discontinuation of the early-phase development of the hydrogen pipeline project [3] - The company is now shifting its focus to other early-phase hydrogen projects in Britain and the Netherlands, while RWE's hydrogen-ready gas power plants will proceed with hydrogen sourced within Europe [4] Strategic Developments - The German government is exploring options to convert Norwegian gas into blue hydrogen in the Netherlands, with captured CO2 sent back to Norway for storage [4]