ESB, Orsted in joint venture for offshore wind developments off the Irish coast

LONDON (ICIS)–ESB and Orsted have signed an agreement for the development of as much as 5GW of renewable energy and complementary renewable hydrogen projects in a 50:50 partnership.

The ESB, Orsted announcement comes at the same time as the Irish government signed a Joint Declaration of Intent on cooperation in the field of renewable hydrogen with Germany.

Orsted said that the first of these offshore wind projects is expected to compete in the next Irish offshore wind auction, ORESS 2.1.

The Irish government has set a target of 5GW of offshore energy by 2030 with an additional 2GW to be specifically designated for hydrogen production via electrolysis.

Data from ICIS Power Horizon Forecast showed that Ireland was due to see hydrogen demand in the country increase to 1.52TWh by 2030 before rising to 3.08TWh in 2040 and to 6.66TWh by 2050, less than 10% of the forecast GB hydrogen demand of 75.84TWh.

With 2GW of offshore wind-power capacity set to be designated to renewable hydrogen production, there is a substantial possibility that Ireland will produce more hydrogen than it requires itself, allowing for exports as a result.

Last year, a memorandum of understanding was signed between EIH2 and the Port of Cork with the Port of Amsterdam to establish a supply chain of renewable hydrogen between the two ports.

Furthermore, ESB earlier this year inked a deal with the Port of Cork to develop renewable hydrogen usage and infrastructure, as well as a deal with Shannon Airport in late 2022 for the development of a hydrogen project near the airport to study the use of hydrogen in aviation.