Germany could save €4.3b with offshore energy islands – report

Germany could save up to €4.3 billion annually by developing offshore “energy islands” in the North Sea to produce green hydrogen, according to a report by the Fraunhofer Institute for Energy Economics and Energy System Technology (Fraunhofer IEE).

The report, commissioned by Copenhagen Energy Islands, highlights the cost advantages of using two energy islands, each connected to 10 gigawatts of offshore wind capacity, located 150 kilometres from shore.

The savings come primarily from reduced grid buildout costs and increased efficiency in producing hydrogen offshore, compared to feeding electricity into the mainland grid.

Limited grid connections could also enhance system flexibility, allowing surplus solar energy to be converted into hydrogen during times of low offshore wind supply.

Germany aims to reach 40 GW of offshore wind capacity by 2035 and 70 GW by 2045, as part of its green energy transition.

Germany and Denmark signed a binding cooperation agreement last year for a joint offshore wind power project on Denmark’s Baltic Sea island of Bornholm. The two countries had also agreed in 2020 to collaborate on the construction of offshore energy islands.

Attribution: Fraunhofer IEE

Subediting: Y.Yasser