Curaçao and the Netherlands are collaborating on options for hydrogen production in Curaçao.
WILLEMSTAD, THE HAGUE - The Netherlands and Curaçao are jointly preparing to harness the significant potential of wind energy and the production of green hydrogen in Curaçao for the transition to a sustainable energy-based economy on the island. This initiative will provide not only affordable green energy for local use by individuals and organizations but also for export. Studies conducted by TNO and Fugro have shown that the potential in Curaçao is substantial enough to support large-scale green hydrogen export.
On Friday, May 24, Minister Cijntje of Economic Development, on behalf of the Pisas cabinet, and Minister Jetten of Economic Affairs and Climate and State Secretary Van Huffelen of Kingdom Relations virtually signed a framework agreement on the collaboration. This agreement gives concrete implementation to the Memorandum of Understanding (MOU) signed a year ago.
The agreement outlines the collaboration at the administrative and senior official levels for further studies and joint financing amounting to approximately 10 million euros. It also establishes a working relationship between the government, business sector, and knowledge institutions in the Netherlands and Curaçao. The aim is to optimally utilize international expertise and insights within the local context of Curaçao. The involved ministries from the Curaçao government include General Affairs (AZ), Economic Development (EO), Traffic, Transport and Urban Planning (VVRP), and Health, Nature, and Environment (GMN).
Concrete plans are being investigated for setting up and implementing a demo phase using floating offshore wind, which will generate electricity to produce green hydrogen and other sustainable fuels through electrolysis, forming a so-called hydrogen value chain. This demo phase will be prepared on a limited scale but is also intended to explore how to scale up to larger production within such a value chain and what is required to make hydrogen production in Curaçao operational, technologically advanced, and commercially competitive on an international level. This process will involve stakeholders and the community to identify the optimal benefits and potential drawbacks for Curaçao and how to leverage this green energy potential on a large scale, both locally on the island and for export.
In Curaçao, state-owned companies such as Aqualectra, Refineria di Kòrsou, Curoil, and CPA (port authority) are involved. In the Netherlands, collaboration is taking place with three major industry associations (IRO for the offshore industry, NedZero for wind energy, and NLHydrogen for the chemical industry), representing over 700 companies collectively. These associations were represented at the virtual signing of the agreement in the Netherlands.
These Dutch industries are interested in Curaçao due to the island's significant potential for hydrogen production, which is increasingly needed in the Netherlands and Europe to green (heavy) industries and the transport sector. The hydrogen value chain being explored in Curaçao involves technology that is crucial internationally but still requires innovation in some areas. The Dutch industry can potentially offer and apply the experiences and innovations achieved in Curaçao to similar projects worldwide, creating a valuable win-win situation within the kingdom.
As part of the collaboration, the focus will not only be on how the hydrogen value chain can be concretely established but also on the strategic advantages Curaçao seeks to gain, the necessary legal frameworks, governance (management and supervision), and the initiation of interaction and communication with stakeholders and the community about possible local applications of sustainable energy. The aim is to complete several studies by the end of 2024.