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Mitsubishi Corp Invests in World’s Largest Green Hydrogen Plant in the Netherlands

Pioneering a Sustainable Future, Mitsubishi's $690 Million Project Aims to Revolutionize Global Hydrogen Production
Japan
m 8058.TSE Blue Chip 150
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Mitsubishi Corp is making a bold move into the future of sustainable energy with an investment exceeding 100 billion yen ($690 million) to establish one of the largest green hydrogen production facilities worldwide in the Netherlands. This ambitious project reflects the growing importance of green hydrogen, produced through water electrolysis using renewable energy, as a next-generation, carbon-free fuel source.

The initiative places Mitsubishi at the forefront of green hydrogen commercialization, particularly in production and supply techniques. By leveraging Europe’s leadership in green hydrogen advancements, Mitsubishi intends to refine these methods for global expansion.

The project, undertaken by Eneco Diamond Hydrogen, a joint venture between Mitsubishi and its subsidiary Eneco, a Dutch renewable energy leader, marks a significant step in sustainable energy development. Slated to begin construction in 2026, with hydrogen production commencing in 2029, the plant aims for an unprecedented annual capacity of 80,000 tonnes. This figure dwarfs the output of the current largest facility, demonstrating the scale and ambition of Mitsubishi’s plans.

Eneco’s extensive offshore wind farm in the Netherlands will be the primary energy source for the hydrogen production. The company plans to integrate the hydrogen into its retail electricity sales network and supply it to manufacturing and power businesses across Europe through pipelines.

The current hydrogen production landscape, primarily reliant on fossil fuel-derived electricity, faces significant cost barriers. Green hydrogen production costs range from 3 to 8 euros per kilogram, notably higher than the 1 to 2 euros per kilogram for fossil fuel-based hydrogen. Mitsubishi’s strategy focuses on reducing these costs through mass production efficiencies.

This initiative aligns with the European Union’s goal to boost green hydrogen capacity to 10 million tonnes annually by 2030. It also signals a broader shift in the industry, with other Japanese firms like Asahi Kasei advancing in hydrogen technology. Mitsubishi’s development in production and supply expertise is expected to stimulate further domestic and international activity in this sector.

Japanese trading house Itochu and Osaka Gas are investing in Danish hydrogen developer Everfuel, participating in a project for an annual production of 3,000 tonnes of green hydrogen. Similarly, oil company Eneos and trading house Sumitomo Corp. are collaborating with Malaysian businesses to produce green hydrogen derived from hydropower by 2030, showcasing the growing global momentum towards sustainable hydrogen solutions.

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