The Northern Seas are well positioned to support Europe’s decarbonisation and energy security goals. Their offshore wind resources, paired with hydrogen infrastructure, could support a secure and cost-effective low-carbon energy system.
To make sense of the significant body of research, Frontier Economics carried out a meta-study for Hydrogen Networks of the Northern Seas (HyNOS), a coalition of gas and hydrogen network operators. The study supported the preparation of the North Sea Summit III, hosted by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) and implemented by the German Energy Agency (dena). It has also helped inform stakeholder discussions on improving electricity and hydrogen system integration and aligning hydrogen value chains, for example, in the context of the recent WindEurope Annual Event.
Why integrated areas matter
Our review found that integrated offshore hydrogen infrastructure has the potential to deliver substantial benefits by 2050:
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€5–11 billion in annual cost savings across Europe compared to stand-alone electricity connections. These savings come from the lower transport costs of hydrogen compared to electricity and from operational flexibility, where dual electricity and gas interconnections allow the most suitable energy vector to be delivered based on system needs, including inter-seasonal energy storage.
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88–121 GW more offshore wind capacity could be deployed in the North Sea compared to scenarios relying solely on stand-alone electricity connections. This helps meet the goal of installing 300 GW offshore wind capacity in the North Seas by 2050, as set out in the Ostend Declaration.
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€1–4 billion in additional savings per year when offshore infrastructure is internationally interconnected, compared to point-to-point non cross-border systems. Greater savings are expected when both power lines and hydrogen pipelines are integrated, enabling more efficient use of renewable resources and reducing dependence on hydrogen imports from outside Europe.
Action is needed
While the benefits are clear, delivering integrated offshore hydrogen infrastructure won’t happen automatically. Regulatory frameworks must be adapted to remove barriers. Market incentives also need to align with this goal, and infrastructure development requires coordination across borders.
To explore these findings in more detail, you can access the full meta-study here. If you’d like to discuss the implications further, feel free to get in touch with us at media@frontier-economics.com.
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14 April 2025
