Published
Market consultation for onshore hydrogen transmission pipeline system in Jutland, Denmark
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Description
To deliver on Denmark’s commitment of the European Hydrogen Backbone, the Danish TSO ENERGINET will establish a new hydrogen transmission system in Jutland, Denmark. When in operation, the transmission system is expected to cover 350-400 km onshore pipeline, compressor station(s), line valve stations and metering and regulator stations. The transmission system will consist of a mix of repurposed and new pipeline. For new pipelines, ENERGINET currently expects that 36-inch pipelines with a design pressure of 80 bar. The methane gas pipeline in Southern Jutland, which could be converted, is 30-inch. Lot 1: As the market for commercial production and utilisation of hydrogen is still developing, it is not yet decided where the pipeline will be placed and what the dimensions will be at specific times. ENERGINET’s current expectation is that the hydrogen system should initially be able to transport up to 3,000 MW of hydrogen production without compression, which should be sufficient for initial market demand. As the market matures, and the demand increases, the capacity of the transmission system is expected to be increased to between 7,000 MW and 10,000 MW based on adding compression. Geographically, the hydrogen transmission system is expected to be expanded in phases, for example establishing a “Lower T” in Southern Jutland (Forming a “T” with Vejen as a central point going to Esbjerg, Fredericia and Flensborg) followed by a northbound infrastructure, “Jutland Backbone”, either in Western Jutland, going past the major electricity nodes, or in Central Jutland, running parallel with the existing natural gas pipeline. Timewise, the current deadlines are to have cross border pipeline connection by end of 2028 with the full scope of the infrastructure to be ready for operation in 2030. Throughout the project execution, ENERGINET expects to spend 2-3 billion EUR on materials and services to establish the system. Due to the market for hydrogen infrastructure relying on new technology, the current supply chain pressure, and the ambitious project timeline, ENERGINET has issued this prior information notice to enable potential future partners to early on give ENERGINET feedback on how to structure the project and associated tender processes to attract the market. ENERGINET realises that for the project to be executed in a successful manner, ENERGINET will have to rely on close external partnerships. As ENERGINET has not yet decided on a model (e.g., could be single turnkey/EPIC (Engineering, Procurement, Installation & Commissioning) contract or various multi-contracting setups), ENERGINET is interested in feedback from all hydrogen related suppliers of material and services, installation contractors and turnkey/EPIC contractors to obtain information on capabilities, availability, and project experience, within the following scope of supplies for hydrogen transmission projects: - Turnkey and EPIC or - Engineering and design capabilities - Fabrication e.g., line pipes, compressor station(s), valves, metering and regulator stations etc. - Installation e.g., line pipes, compressor station(s), valves, metering and regulator stations etc. - Commissioning activities - Supervision/inspections ENERGINET is intending for the market consultation to provide input for the following types of questions: - What existing experience do the supply side of the market have with delivery of pipeline infrastructure projects? Based these specific experiences, what should ENERGINET be especially aware of? - What are the current capacities and capabilities? What are current market constraints? Throughout its sourcing process, what can ENERGINET do to mitigate the impact of current market constraints? - Which contract and procurement models are most attractive for the market? Which contract and procurement models are least attractive for the market? - What actions do the market consider critical for ENERGINET to frontload considering the timeline and scope of the transmission system? Energinet requests that all input to this notice is given in writing. All input may be published, in an anonymised form. Please note that this is solely an opportunity for the market to affect a future tender process. Energinet do not expect interested parties to submit extensive sales documentation. In case of any questions, please contact: Mark Eskesen, Phone: +4524411390 Lot 1: As the market for commercial production and utilisation of hydrogen is still developing, it is not yet decided where the pipeline will be placed and what the dimensions will be at specific times. ENERGINET’s current expectation is that the hydrogen system should initially be able to transport up to 3,000 MW of hydrogen production without compression, which should be sufficient for initial market demand. As the market matures, and the demand increases, the capacity of the transmission system is expected to be increased to between 7,000 MW and 10,000 MW based on adding compression. Geographically, the hydrogen transmission system is expected to be expanded in phases, for example establishing a “Lower T” in Southern Jutland (Forming a “T” with Vejen as a central point going to Esbjerg, Fredericia and Flensborg) followed by a northbound infrastructure, “Jutland Backbone”, either in Western Jutland, going past the major electricity nodes, or in Central Jutland, running parallel with the existing natural gas pipeline. Timewise, the current deadlines are to have cross border pipeline connection by end of 2028 with the full scope of the infrastructure to be ready for operation in 2030. Throughout the project execution, ENERGINET expects to spend 2-3 billion EUR on materials and services to establish the system. Due to the market for hydrogen infrastructure relying on new technology, the current supply chain pressure, and the ambitious project timeline, ENERGINET has issued this prior information notice to enable potential future partners to early on give ENERGINET feedback on how to structure the project and associated tender processes to attract the market. ENERGINET realises that for the project to be executed in a successful manner, ENERGINET will have to rely on close external partnerships. As ENERGINET has not yet decided on a model (e.g., could be single turnkey/EPIC (Engineering, Procurement, Installation & Commissioning) contract or various multi-contracting setups), ENERGINET is interested in feedback from all hydrogen related suppliers of material and services, installation contractors and turnkey/EPIC contractors to obtain information on capabilities, availability, and project experience, within the following scope of supplies for hydrogen transmission projects: - Turnkey and EPIC or - Engineering and design capabilities - Fabrication e.g., line pipes, compressor station(s), valves, metering and regulator stations etc. - Installation e.g., line pipes, compressor station(s), valves, metering and regulator stations etc. - Commissioning activities - Supervision/inspections ENERGINET is intending for the market consultation to provide input for the following types of questions: - What existing experience do the supply side of the market have with delivery of pipeline infrastructure projects? Based these specific experiences, what should ENERGINET be especially aware of? - What are the current capacities and capabilities? What are current market constraints? Throughout its sourcing process, what can ENERGINET do to mitigate the impact of current market constraints? - Which contract and procurement models are most attractive for the market? Which contract and procurement models are least attractive for the market? - What actions do the market consider critical for ENERGINET to frontload considering the timeline and scope of the transmission system? Energinet requests that all input to this notice is given in writing. All input may be published, in an anonymised form. Please note that this is solely an opportunity for the market to affect a future tender process. Energinet do not expect interested parties to submit extensive sales documentation. In case of any questions, please contact: Mark Eskesen, Phone: +4524411390
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