<b>Bijsluiter</b>. De hyperlink naar het originele document werkt niet meer. Daarom laat Woogle de tekst zien die in dat document stond. Deze tekst kan vreemde foutieve woorden of zinnen bevatten en de opmaak kan verdwenen of veranderd zijn. Dit komt door het zwartlakken van vertrouwelijke informatie of doordat de tekst niet digitaal beschikbaar was en dus ingescand en vervolgens via OCR weer ingelezen is. Voor het originele document, neem contact op met de Woo-contactpersoon van het bestuursorgaan.<br><br>====================================================================== Pagina 1 ======================================================================

<pre>13963420
    NortH,
     Project Outline, Status and Next Steps
     NortH,                   Draft
</pre>

====================================================================== Einde pagina 1 =================================================================

<br><br>====================================================================== Pagina 2 ======================================================================

<pre>13963420
     Contents
             The case  for  kickstarting  the green   hydrogen economy
             NortH2  Objectives    &  Project Overview
             Demand, Initial Design & Cost     Estimate
             Economics &    Competitiveness
             Closing the Value    Gap
             Outlook  to Beyond    2030
             Conclusions   Feasibility Study  Phase 1
     NortH.,
                                                                       1117
</pre>

====================================================================== Einde pagina 2 =================================================================

<br><br>====================================================================== Pagina 3 ======================================================================

<pre>13963420
     Climate and energy transition targets
     Urgent action is needed to realise climate targets
                 Global
                  »  In 2015, 195 countries agreed    in Paris to reduce the emission of     greenhouse   gasses by  80   -
                                                                                                                            95% in
                     2050.
                 Europe
                  »  Green   Deal, by 2050, Europe  aims to become the world’s first climate-neutral continent.
                          » European Climate  Law to enshrine the 2050     climate-neutrality objective into EU law
                          » 2030 Climate   Target Plan   to further reduce net greenhouse gas emissions by at        least 55% by
                            2030
                  »  In 2030, EU has the ambition to realise 2x40 GW electrolyser capacity in EU-27 and neighbouring
                     countries. In 2024, Europe shall have installed 6 GW of green hydrogen production capacity
                 The Netherlands and      Germany
                  »  NL: Ambition to realize 3-4 GW of     electrolyser capacity  in 2030 anchored into Climate Accord and NL
                     H2  Strategy
                  »  Germany: Target    5 GW installed  electrolyser capacity  in 2030  as per German H2    Strategy
                                                                                                                                   1118
</pre>

====================================================================== Einde pagina 3 =================================================================

<br><br>====================================================================== Pagina 4 ======================================================================

<pre>13963420
    Why hydrogen?
     The inevitable role for                  hydrogen in the energy transition
       Hydrogen will play a key rolein:                                                     There is    an  urgent need for:
       >» Enabling decarbonisation of hard                         to       abate            >    Large   scale            projects        to         trigger                 cost    reduction
             industrial sectors and heavy duty                     and          long              electrolysers
             range  transport                                                               >     Breaking chicken-egg cycle for supply and demand of
       >     Providing       balance and storage capacity for                                     green hydrogen to realize the ambitions for 2030-
             intermittent renewable energy to achieve a                                           2050 for industry and transport
             reliable energy system at lowest societal cost                                       Volumes for green hydrogen that enable infrastructure
                                                                                                  development
                                                                                                                     Cll ghinCirk
                                                                                                               Pum
                                                                                                                ehiches             Syntheticfuel
                                                                                                           algal6
                                                                                                                                                                    of oil
                                                                                                                                                         Rutge
                                                                                                                                    “ Ciel
                                                                                                                                                         I al
                                                                                 .
                                                                                                  = Ander
                      So
                                  ps                                       A
                                                             Electricity grid
                                                                                         Hydrogen
                                                                                      (natural gas)
                                                                                     infrastructure
                                                                                                                                                                      a
                                                                                                                                                          (LL         and  processing
                                                                                                                                                                     ol stool
                       QDchange  for
                       import/export
                                     Electricity
                                                                                                             I
                                                                                                                                                       Varnous
                                                                                                                                                       as an
                                                                                                                                                               applications
                                                                                                                                                             industrial gas
                                     storage                          Hydrogen from                             Heating           High-value heat for
                                                                                                                for built
                                                                      electrolysis                                                Industry
                                                                                                                           il
                                                                                                                arm ircinImen
     NortH.,
                                                                                                                                                                                                1119
</pre>

====================================================================== Einde pagina 4 =================================================================

<br><br>====================================================================== Pagina 5 ======================================================================

<pre>13963420
     System changes required towards deep decarbonisation                                                                 in 2050
     Introduce H2         as new    pillar and trigger radical changes in the energy system
      2020                                                                      2050
       Market      (production    and use)                                      Market
        »    Fossil  based,  NG   for energy and grey H2 for feedstock          +
                                                                                   Renewable based   (energy  and  feedstock),
        »    Hydrogen production at end-user location (captive)                 +
                                                                                   Hydrogen     traded   as
                                                                                                              commodity,     transported  over
        »    No commodity market for H2                                            backbone
                                                                                Fully functioning hydrogen    market   (merchant)
       System                                                                   System
             Focus      electricity market decarbonisation                         Focus     energy system decarbonisation
                                                                                +
        »            on                                                                  on
             No transport infrastructure for hydrogen                              Integrated         system for electrons and molecules
                                                                                +
        »                                                                                     energy
                                                                                +
                                                                                   Large scale hydrogen supply, storage and backbone
       Cost
        »    Delivery of green hydrogen     to end customers expensive          Cost
                   »  [EEE     kg  H2                                           +
                                                                                   Green   hydrogen
                                                                                   feedstock
                                                                                                       a competitive supply of     energy  and
                                                                                       «RE
                                                                                                €/kg H2
     NortH.,
                                                                                                                                               1120
</pre>

====================================================================== Einde pagina 5 =================================================================

<br><br>====================================================================== Pagina 6 ======================================================================

<pre>13963420
    The development of a large-scale integrated green                                             hydrogen          value
     chain can kick-start the system change                                 ...
  »  ...  and provide the basis and platform for further exponential growth the hydrogen economy
                      Industrial scale value chain
                      Supply:        Additional offshore wind for hydrogen production in 2030, on top of existing plans
                      Conversion: Dedicated electrolysis for conversion of additional wind power to hydrogen
                      Transport:     Using the hydrogen backbone to connect to all industry clusters
                      Storage:       Using salt caverns to balance demand and supply and provide affordable green energy
                      storage
                      End  use:       Decarbonize  industry and heavy duty transport by a secure supply of affordable   green
                                      hydrogen
                      Kickstart the value chain
                       »  Resulting in large cost reductions for components by rapid scaling and standardisation
                       »
                          Developing an integrated value chain for green hydrogen production and supply
                       »  Driven by and enabling development of effective long-term policies directing the transition from
                          fossil to green hydrogen
                       Lowest societal cost for the energy transition
                        »
                           By  smart   reuse of gas infrastructure and  optimized expansion of    the electricity transmission
                           network
                           Lowering the cost of green hydrogen early in the transition process
                           Targeting industries for which hydrogen is either an opportunity or the only competitive long-term
                           option, enabling new and protecting existing industries                                             6
     NortH.,
                                                                                                                                 1121
</pre>

====================================================================== Einde pagina 6 =================================================================

<br><br>====================================================================== Pagina 7 ======================================================================

<pre>13963420
     Partnering              will be     key to    success
                                            Common          objectives
                                            Meeting   the Paris Agreement targets and timeframe to
                                            decarbonise industrial sectors at the lowest cost to society
                  Governments               Approach
                                                Broad and inclusive consortium that reflects the Northwest
                                                European scale of the project: cross-border, multi-country,
                                                multi-company, public-private
                                                Transparent business    case  in open   dialogue with market,
                  Cross-border                  governments and knowledge         centers
                   Partnership                  Coordinated investments and       developments by    all parties
                                                along the value chain
       Developers              Customers        Facilitated  by targeted government policies, regulations      and
                                                subsidies
                                                Decarbonising    industrial sectors  to strengthen economic
                                                activity in Northwest Europe
                                                                                                                   1122
</pre>

====================================================================== Einde pagina 7 =================================================================

<br><br>====================================================================== Pagina 8 ======================================================================

<pre>13963420
     Contents
             The case for kickstarting the green  hydrogen economy
             NortH2   Objectives   &  Project Overview
             Demand, Initial Design & Cost    Estimate
             Economics &   Competitiveness
             Closing the Value   Gap
             Outlook  to Beyond   2030
             Conclusions  Feasibility Study Phase 1
     NortH.,
                                                                   1123
</pre>

====================================================================== Einde pagina 8 =================================================================

<br><br>====================================================================== Pagina 9 ======================================================================

<pre>13963420
     NortH2         as a    kick     starter      of the green         hydrogen         economy
     Realising a platform for further exponential growth of the green hydrogen economy
    What is NortH2?                                               What does the  platform enable?
                     Installation of 4 GW of wind power and
                                                                                Create necessary markets and scale to
                     electrolysis, dedicated for hydrogen                       drive down  cost and enable the green
                     production by 2030 and 10+ GW in
                     2040.                                                      hydrogen  economy
                     Transport of Hydrogen   via the Backbone                   Trigger development  an
                                                                                                        open  access
                     based on converted gas infrastructure                      hydrogen transport  and storage system
                     towards key industrial clusters in NWE
                     Supporting policy framework for parallel                   Robust commercial, financial and policy
                     development of supply and    demand  at                    framework for future development of
                     industrial scale                                           supply and demand.
     NortH.,
                                                                                                                        1124
</pre>

====================================================================== Einde pagina 9 =================================================================

<br><br>====================================================================== Pagina 10 ======================================================================

<pre>13963420
     NortH2        Development                Staircase
     NortH2 contribution 10+ GW wind and 800 kt H2 in 2040
                                                   Phasing            BE re
                                                                             -—
                                                                                               yy
                                                                                                            Towards  fully liquid
                                                                   Pn                              SN    BICC    VAC     CRT AE]
                                                   NortH2
                                                           > 4
        production                                     7                          PHASE 2
                                                                                  sx CAVA ATs
                                                                                                          \
        hydrogen                                                        [0]
                                                                                    JOJO Tei Wl 5
                                                                             1, ToT -0 =
                                                                                                   Vi
                                                                                         [-Yo1 6]JIT
                                                                                                        /
                                                                                                          /
         Gre n                                     PHASE 1                                            /
                                                  UE   XAVATT
                                                                                                   /          Initial focus
                                                     400 kton H2
                                                                                                Pp         _
                                                                                                              for FID(s)
                                                                                            /
                                             Onshore  electrolysis                    ’
                                                                                                        io
                                                                                 ’
                    Green H2 Pilot projects                                 pl
                                         2027 ~~
                                                 am       -—
                                                                   2030                             2040                            2050
     NortH.,                                                                                                                   04 March 2020
                                                                                                                                             1125
</pre>

====================================================================== Einde pagina 10 =================================================================

<br><br>====================================================================== Pagina 11 ======================================================================

<pre>13963420
    The north of the Netherlands                               as    the      perfect        incubator
    The north of the Netherlands is    uniquely positioned     for the  development of the     green hydrogen   value chain
                    Proximity  to resources
                    The north of the Netherlands is closely located to prospective offshore wind areas, has the
                    required port infrastructure in place and space can be made available for large scale green
                    hydrogen production to overcome limitations on power grid capacity (p.e. energy transport
                    from North to South/West).
                    Transport  &  Storage Capacity
                    The main scenario of the hydrogen backbone development starts in the Northern part of the
                    Netherlands, which enables NortH2’s green hydrogen to be transported to the main demand
                    centres in NL and Germany. The North of the Netherlands also has excellent conditions for
                    large scale storage of hydrogen in salt caverns or depleted gas fields.
                    Access to knowledge, suppliers & markets
                    From the North green hydrogen can be easily distributed to North-West European markets,
                    predominantly in the Netherlands and Germany. The Netherlands and in particular the
                    province of Groningen are a hub of energy grids and locates knowledge institutes and
                    companies that have extensive knowledge about natural gas and hydrogen.
                    Security of supply  can be assured from the start,                                              Current gas transmission  infrastructure,
                    which is key for consumers  to switch from a fossil basis to green hydrogen.                    fudicatingitis
                                                                                                                              the
                                                                                                                                   high density of pipalinias
                                                                                                                           in     Groningen  region.
     NortH.,
                                                                                                                                                          1126
</pre>

====================================================================== Einde pagina 11 =================================================================

<br><br>====================================================================== Pagina 12 ======================================================================

<pre>13963420
    Value Chain
     From     source  to customer      -
                                         an integrated  value chain from renewable power     to green  hydrogen distribution
                                                 Green H2                     Transport      &
         Offshore Production
                                                 Production                   Storage
       »   Construction of                       Dedicated  electrolyser      Dedicated     Hydrogen        » Delivery of green
           additional wind farms in              directly coupled   to        infrastructure in the           hydrogen     to consumers
           the North Seq,                        wind farm                    Netherlands and                 in Northwest     Europe.
           dedicated for H2                      Green  hydrogen              Northwest Europe      to        Initially to high grade
       »
           Mega offshore wind                    production initially in      large  industrial clusters      industrial heat and
           farm, 4 GW in 2030                    the Eemshaven moving         Hydrogen Storage                feedstock!, and later
           and  growth    to 10+    GW           towards offshore             facilities at salt caverns      also  to  heavy duty
           in 2040                               beyond   2030                in the north of The             transport and built
                                                                              Netherlands                     environment.
     NortH.,       !                                                                                                                    12
                     Without carbon requirements
                                                                                                                                           1127
</pre>

====================================================================== Einde pagina 12 =================================================================

<br><br>====================================================================== Pagina 13 ======================================================================

<pre>13963420                                                                                                                                                                                                                                                   Jo
                                                                                                                                                                                                                                                               en
                                                                                                                                                                                                                                                                hi
                                                                                                                                                                                                                                                                        as
NortH,
                                                                                                         North Ses wind farms                                                                                                                               ;
                                                                                                                                                                                                                                                                ill A
                                                                                                                                                                                                                                                                           =
                                                                                                             gener ale power
                                                                                                                                                                                   100% green
                                                                                                                                                                                     POWET
Europe's largest                    green     hydrogen project
NortH,:    One     single integrated      chain in which renewable power     generated by
offshore wind farms is used for            large-scale green hydrogen production, transmission,                                                                                                                                      Hamburg
                                                                                                           I he electrolyser produces
storage and supply. With this ambitious initiative, Gasunie, Groningen Seaports and                                                100%
                                                                                                              hydrogen from
Shell Nederland will help achieve the targets from the Dutch Climate Agreement.
                                                                                                                renewable    power
We will be      supplying large quantities green hydrogen to industry in the Netherlands
and Northwestern Europe, reducing carbon emissions by 7 megatons per year.
This initiative will give the green hydrogen market a real boost!
                                                                                                                            100      green
   Scale-up        in 2040:                                                                                                  hy   cl oO eEn
   More offshore wind farms and                  electrolysis                                                                                                                                                       Hydrogen stored
                                                                                                                                                                                                                1]
                                                                                                                                                                                                                   underground  caverns
                                                                                                      Amsterdam                   Industry        uses  green
                                                                                                                              hydrogs         Mn a"     esSOuUrt
                                                                                                                               NG     Tor   process       neating
                                                                                                                                                                                                                                 Reuse of gas   pipelines for
   Scaling up green hydrogen                                       —
                                                                     50 GW                                                                                                                                                         transporting hydrogen
                                                                 :
                                                                                                                                                                                                                                  eliminates the need for
   production from 100%
                                                                                                                                                                                                                              additional power grid upgrades          |
   new    wind power                                               ~
                                                                     40 GW
                                                                                                                                                                                                                            |
   LJ                                                              -
                                                                     30 GW
   Bl       Other projects                                                                    Zeeland
                                                                                                             Antwerp
                                                                     20G
                                                                     2   WwW
                                                                   -
                                                                                             es           a
                                                                                                          _
                                                                                                                 -
                                                                   =
                                                                     10 GW
  ———             EE                                                                                                                                               Limburg
    2024             2027          2030                                                                                                                       |  |
                                                                                                                                                                                                                                  800,000
                                                                                                                                                                                                                                 hydrogen
                                                                                                                                                                                                                                           tonnes  of green
                                                                                                                                                                                                                                            reduces carbon
                                                                                                                                                                                                                              emissions  by  7 megatons   a   year
                                                                                                                                                                                                                                                                      |
   Hydrogen supply               to                   TTT
   various sectors                                    H, usage
                                                            Pilots
                                                            Large-scale
                                                            Tm
                                        RD
                                        i
      Transport     &  mabillity
      Built  ervwviron  ment                                                                                                                                  buffer to compensate                                               Wind farm
                                                                                                                               a!
                                                                                                                                          ll Hydrogen                                                                                         scale-up from
              2024       2027    2030   2040   20350
                                                                                                         gas Sorcery
                                                                                                               Cosung
                                                                                                                        He in energy      |         for fluctuations  in solar and
                                                                                                                                                       wind power generation             in
                                                                                                                                                                                           Nort,  creates extra jobs
                                                                                                                                                                                            the northern Netherlands
                                                                                                                                                                                                                                  4GW   In 2030 to 10+ GW
                                                                                                                                            4
                     Fld                                                                                                              i
</pre>

====================================================================== Einde pagina 13 =================================================================

<br><br>====================================================================== Pagina 14 ======================================================================

<pre>13963420
     Contents
             The case  for kickstarting  the green hydrogen economy
             NortH2   Objectives   &  Project Overview
             Demand, Initial Design & Cost       Estimate
             Economics &    Competitiveness
             Closing the Value    Gap
             Outlook  to  Beyond   2030
             Conclusions   Feasibility Study  Phase 1
                                                                    14
     NortH.,
                                                                       1129
</pre>

====================================================================== Einde pagina 14 =================================================================

<br><br>====================================================================== Pagina 15 ======================================================================

<pre>13963420
     Heating and feedstock                         as      primary markets
     In the  feasibility study the cost of hydrogen (LCOH)     is compared with full electrification for different types of existing
     natural gas    users for heating  and feedstock.
                        Heating
                        High grade heating can most economically be performed by using
                        hydrogen. The major advantage of switching to hydrogen is that
                        existing processes can be retrofitted, whereas switching to the all-
                        electric option requires replacement of equipment.
                        Feedstock
                        Also feedstock  applications   without carbon can be retrofitted to green
                        hydrogen. Part of refineries hydrogen supply for hydro cracking or
                        hydro treatment (p.e. naphtha cracking or desulfurisation) can be
                        decarbonised.
                                                  (10)(1c)
     NortH.,                                                                                                                         15
                                                                                                                                        1130
</pre>

====================================================================== Einde pagina 15 =================================================================

<br><br>====================================================================== Pagina 16 ======================================================================

<pre>13963420
     Initial      Design       Characteristics
     Feasibility study assumptions    for the first 4 GW      to  be installed   by 2030
                              Base   case  for wind farm north of Gemini     (average distance    130km from   shore)
                              1 GW per year to be realized in the       period 2027-2030
                              12 MW turbines for the first 2GW and 15 MW turbines for the second 2GW
                              Dedicated offshore power infrastructure       to Eemshaven and      partial connection to Tennet grid
                              Electrolyser   located in Eemshaven in 50     to 100  MW modules
       Electrolyser           Alkaline Water     Electrolysis
                              For the   H, transmission backbone     currently a            regime between    50 and 30 bar is defined
       Compression                                                                pressure
                           ww               that connects   all  major industrial clusters   in Netherlands and interconnectors to     Germany and
       Transmission           Feehan
                              Belgium
                              4 Salt            with   total storage capacity of      JEUNE
       Storage                        caverns        a
                              Initially targeting  industrial segments such   as  high grade   heat and feedstock without carbon requirement
     = Q 3 I ka                                                                                                                                   16
                                                                                                                                                     1131
</pre>

====================================================================== Einde pagina 16 =================================================================

<br><br>====================================================================== Pagina 17 ======================================================================

<pre>13963420
    Value Chain Investment                                                       -
                                                                                        initial            configuration, partially optimized
     NortH,        Investment! in Billion Euro                   -
                                                                     Phase la
                .
                                                                                                                                                        Investment in the wind farm             (4 GW)      is by far the
              Wind Farm
                                                                                                                                                        largest required investment)
                                                                                                                                                        Infrastructure     to evacuate       wind power from North of
             Power Infra |                                                                                                                                                                         ols
                                i                                                                                                                       Gemini to shore accounts for              significant     CAPEX
                                                                                                                                                        The   required    investment in the onshore             electrolyser  is
           Electrolyserd
                      Y
                                                                                                                                                        approximately fBillion            Euro
                                                                                                                                                      Gasunie estimates            an  investment of       gil  billion for the
              Transport?       |
                                                                                                                                                      ;
                       P
                                                                                                                                                        initial  H, backbone.        This CAPEX is outside          NortH,.
                                                                                                                                                4          Salt Caverns      are    required    to   provide storage for      a
                                                                                                                                                      |
                  Storage                                                                                                                               total investment of        {ESS   million
                       Billion Euro
                    1.
                                                                     (10)(1c)
                    2.
     NortH.,        3.   Including onshore cable(s) and compression of hydrogen before it enters the backbone                                                                                                                  17
                    4.   Total capacity of the hydrogen backbone will be shared with other hydrogen projects as well, e.g. blue hydrogen production in other    industry clusters. To distribute the costs of the
                         backbone fairly among these different projects, a capacity tariff for hydrogen transportation is charged to the project as an OPEX.
                                                                                                                                                                                                                                  1132
</pre>

====================================================================== Einde pagina 17 =================================================================

<br><br>====================================================================== Pagina 18 ======================================================================

<pre>13963420
     LCOH reduction for                 an    optimized            and     integrated           value chain
     Reduction of the LCOH from NortH2     can be realised   by optimization   and integration of the value chain components
                     Programmatic approach
                     Scale-up to a 4 GW project    in 2030 and    integration of the value chain through  a
                                                                                                            programmatic
                     approach   allows for potential  cost reductions of the individual assets (wind  turbines and
                     electrolysers).
                      Commercial optimization
                      Adding a connection to the   electricity grid allows for a commercial  optimization of the  green hydrogen
                      production
     NortH.,                                                                                                                     18
                                                                                                                                    1133
</pre>

====================================================================== Einde pagina 18 =================================================================

<br><br>====================================================================== Pagina 19 ======================================================================

<pre>13963420
     Programmatic approach for                                   AGW end-to-end value chain to reduce
                         approach       is a long-term and strategic umbrella program of interlinked projects          and components       along
    EE H2Qyfefommatic
    the      value chain that   aim at     achieving large-scale impacts based on strategic partnerships.
                     AGW Scale      (rather than 4 x 1IGW):
                     Due to  scaling effects, standardization (product   rather than  project) approach, LCOH reductions  are estimated for the large
                     components     in the NortH2 value chain:
                      »  Wind turbines: reductions in annual OPEX between 18 and 25%, integration of activities,       new  installation methods and
                         progressive    cost reductions (learning curve of 8 to 12% for each doubling of offshore wind capacity)
                      »  Electrolysers: reductions estimated between 13 and 35% due to scaling, standardization, automation and        integration (eg
                         Balance of Plant) leading to more progressive cost reductions
                      »  Offshore power infra: HVAC is currently considered for the first 4 GW phase, HVAC vs HVDC crossover needs more
                         evaluation and further scope optimization and standardization is expected. Beyond 2030, offshore electrolysis is
                         considered an option for further dramatic cost reduction in transporting energy to shore.
                            compressor capex.       An LCOH reduction of   JSR     can be achieved.
                       4 Single development program: Synergies        across  the value chain in combining procurement, construction and installation
                         activities, thereby decreasing LCOH with     IEEE
                       » Overall operational algorithm: Load prediction and optimization of the electrolyser to increase energy efficiency and
                       »
                         reduce stack maintenance and increase electrolyser utilization and reliability, thereby decreasing LCOH vith      INCE
                         New cooperative initiatives: Central operation and maintenance across the production chain of green H2 leads to lower
                         overall OPEX and in turn leads o     IECREN    CoH reduction.
     NortH.,                                                                                                                                      19
                                                                                                                                                     1134
</pre>

====================================================================== Einde pagina 19 =================================================================

<br><br>====================================================================== Pagina 20 ======================================================================

<pre>13963420
     Commercial                 optimization
    A  electricity grid   connection allows for commercial             optimization of    green  hydrogen production by buying                              or    selling
     additional green     electricity, thereby      optimizing the load hours of the        electrolyser.
                                                                                                                               Cosw|
                                                                                                                                                         |
                       |COH reductic             LYE     through:                                                                                te%       5%             1%
                        »   A 1 GW connection, to support the network and without additional                   grid
                                                                                                                               -
                                                                                                                                                         |
                            extensions.                                                                                        }
                                                                                                                                                         |
                        »
                            Buying from the grid if    green  electricity and electrolyser capacity available.                 )
                                                                                                                                                                pi
                        »
                            Selling to the  grid if the electricity price is high.
                                                                                                                                           Kr                   electrolyser
                                                                                                                                                                   57%
                      Considerations:
                       »   The combination of available        electrolyser capacity and supply of
                           green   electricity (PV) currently limits a further reduction in LCOH.
                                 »  An LCOH2 reduction in the             [QB] range rather than the      €/kg
                                    (ORB)
                                            range could be achieved moving            beyond   Solar
                                    Power from NL                                                         LCOH
                       »   The  impact of the operating strategy and scale of NortH2          on the
                           electricity market price is not yet known                                                                        19
                       »   Beneficial support of the        electricity system by balancing (not                      |                        |                        |
                                                                                                                  Buying      Buying       Selling      Buying      Buying   Base case
                           quantified)                                                                              mix       green                    mix and    green and
                                                                                                                                                        selling     selling
                                                                                                                        Uncertainty of market influence
</pre>

====================================================================== Einde pagina 20 =================================================================

<br><br>====================================================================== Pagina 21 ======================================================================

<pre>13963420
     Contents
             The case  for kickstarting  the green hydrogen economy
             NortH2   Objectives   &  Project Overview
             Demand, Initial Design & Cost     Estimate
             Economics &     Competitiveness
             Closing the Value    Gap
             Outlook  to  Beyond   2030
             Conclusions   Feasibility Study  Phase 1
                                                                    21
     NortH.,
                                                                       1136
</pre>

====================================================================== Einde pagina 21 =================================================================

<br><br>====================================================================== Pagina 22 ======================================================================

<pre>13963420
     Optimized                    Green LCOH2 for NortH2 4GW                                                                       Program by 2030
     Programmatic approach and value chain optimization                                          can     reduce green LCOH2 from                                         (10)(1c)
                                                                              (10)(1c)
             Based on the capital expenditures (CAPEX), operational expenditures {OPEX), lifetimes of the individual assets and efficiencies, the integral cost to produce, transport, store, and
             deliver a unit of hydrogen (kgH2] is calculated. This cost is expressed as the levelized cost of hydrogen (LCOH). The LCOH is the ratio between the discounted outgoing cash flows
             over the lifetime divided by the discounted sum of the actual energy delivered.
             The LCOH shown in the    graph below are  in real terms and on an after-tax basis. As such, the LCOH allows for a comparison with present-day prices of competing commodities (e.g.
             electricity, blue hydrogen, natural gas and carbon capture and storage)
     NortH.,                                                                                                                                                                                      22
             LCOH levels        40% accurate
                            are
                                                                                                                                                                                                     1 1 37
</pre>

====================================================================== Einde pagina 22 =================================================================

<br><br>====================================================================== Pagina 23 ======================================================================

<pre>13963420
     Indicative value                                   assessment                             of H2              compared                        to     alternatives
     The    cost   of hydrogen              (LCOH)        is compared to              full electrification             or  decarbonized gas options for industrial                             heating.
                                The rudimental comparison performed in the feasibility study between the indirect and direct heating
                                processes! showed that hydrogen is a promising alternative to full electrification. Cost of green
                                hydrogen produced by NortH2 is higher than blue hydrogen? or natural gas? with a CO,-price (i.e.
                                ‘value gap’).
                                                                                                                                                                                       oldoet niet:
                                                                                                                                                                                        6X worden
                                                                                                                                                                                      ide heat        en   feedstock
                                                                                                                                                                                       competitiveness
                                                                                                                                                                                        ive   landscape for             decarb
                                                                                     OCapex     OOpex      [Market Price      [Value gap
               The additional   costs of modifications have been included in the heating options
               2
                 Costs of blue hydrogen   are estimated from natural gas price (25 EUR/MWHh),   conversion  efficiency (75%) and CCS costs {120 EUR/ton), and increased with the same transportation and storage costs as
     NortH,    for NortH2                                                                                                                                                                                                23
               3
                 Natural gas includes transportation fee of ~1.65 EUR/MWh and CO,       costs.                                                                                                                              1138
</pre>

====================================================================== Einde pagina 23 =================================================================

<br><br>====================================================================== Pagina 24 ======================================================================

<pre>13963420
     Staircase terug
    (10)(2e)
                     04 March 2020
     NortH.,
                                   1139
</pre>

====================================================================== Einde pagina 24 =================================================================

<br><br>====================================================================== Pagina 25 ======================================================================

<pre>13963420
     Contents
             The  case  for kickstarting  the green hydrogen economy
             NortH2    Objectives   &  Project Overview
             Initial Design & Cost Estimate
             Hydrogen     Demand &     Competitiveness
             Closing   the Value    Gap
             Outlook   to  Beyond   2030
             Conclusions    Feasibility Study  Phase 1
                                                                     25
     NortH.,
                                                                        1140
</pre>

====================================================================== Einde pagina 25 =================================================================

<br><br>====================================================================== Pagina 26 ======================================================================

<pre>13963420
     Existing policy                 measures             insufficient           to    close the gap
     Policy measures    increase    competitiveness    to different  degrees—existing      ones seem more    suited  to  smaller scale projects        as
     existing ‘caps’ limit their contribution.
                      »
                           Exploitation subsidy could strongly contribute to cost reduction when no
                           budget and no prioritization of technologies are applied, however, current set-
                           up makes significant contribution to reduce costs far less likely.                         EH    CA
                      »    Investment grants directly contribute to lowering capex, but size of NortH2
                           project does not align with existing budgets                                             Exploitation
                                                                                                                      subsidy
                      »    Accelerated depreciation and Energy Investment Allowance both reduce the
                           LCOH by 1%.                                                                              Yn
                                                                                                                       grant
                      »
                           Hydrogen Ready equipment policies increases competitiveness           of  hydrogen                                 LC     Et
                           compared to electricity slightly, indicating conversion costs         are   a small
                                                                                                                               1        "       ”          oh
                           component.
                      »   A carbon levy may lower the difference with natural gas, but needs to be                          0     "250        80
                                                                                                                 =~
                           considerable (>400 EUR/t) to close the gap.                                            evy      50     W250IE0E      70
                                                                                                                 FRY
                                                                                                                          00      posmmoE         eo
                                                                                                                          Natural gas  BCO2 DIValug gap
                         The combined     policy measures for cost reduction lower the LCOH   by 13  EUR/MWh
                |
                         (realistic optimistic).
     NortH,                                                                                                                                             26
                                                                                                                                                            1141
</pre>

====================================================================== Einde pagina 26 =================================================================

<br><br>====================================================================== Pagina 27 ======================================================================

<pre>13963420
     Key Policy Asks                to   close the gap
     Policies required to  realise NortH2 ambitions
                  Dedicated licence for offshore wind   development   4 GWin 2030 and 10 GWin 2040
                  Reimbursement of offshore transport infrastructure   costs to create a level playing field
          ll
                  Policies  to enabling hydrogen purchases   at competitive cost, e.g. CfD
                  Market incentives   to switch to low carbon energy  or green  hydrogen for   decarbonisation
                  Development of the hydrogen      backbone  by TSO   Gasunie
     NortH,                                                                                                    04 March 2020
                                                                                                                             1142
</pre>

====================================================================== Einde pagina 27 =================================================================

<br><br>====================================================================== Pagina 28 ======================================================================

<pre>13963420
     Contents
             The case  for kickstarting  the green hydrogen economy
             NortH2   Objectives   &  Project Overview
             Demand, Initial Design & Cost     Estimate
             Economics &    Competitiveness
             Closing the Value    Gap
             Outlook   to  Beyond   2030
             Conclusions   Feasibility Study  Phase 1
                                                                    28
     NortH.,
                                                                       1143
</pre>

====================================================================== Einde pagina 28 =================================================================

<br><br>====================================================================== Pagina 29 ======================================================================

<pre>13963420
     Beyond            2030
     Explore North2       economics for increased installed offshore                                capacity towards                 10 GW
                         LCOH reduction due to:
                          »   Scale up                                 -
                                                                          Additional 6 GW
                          »
                              Learning       curve    effects          -
                                                                          More mature supply chains
                          »   Offshore H2          production          -
                                                                          Lower offshore infrastructure cost
                         First order estimates indicate that after 2030:
                          »    LCOH      highly dependent on             Offshore factor;
                          »    Break-even distance for onshore! vs offshore hydrogen production
                              currently range between 100 and 250 km based on varying the
                              offshore factor from 1.5 to 2.0.
                          »   Offshore hydrogen production is less sensitive to distance to shore.
                          »   The offshore factor will differ between island and platform solutions.
                          »    Island or platform currently result in comparable LCOH.
                        Offshore hydrogen production may lead to cost savings beyond 2030, as
                        the offshore power infrastructure remains a significant cost component.
               )        These cost savings depend significantly on the possibility to keep the EPC
                        and O&M costs of offshore electrolysis vs onshore electrolysis low.
                        More work needed in the                  next   phase     to clarify offshore (marinization)
                        factor.
              The offshore factor does     have    be the      for hydrogen production    islands and platforms. Either option has cost components that raise    lower its offshore factor.
     NortH,                            not      to        same                         on                                                                     or                            29
                                                                                                                                                                                               1144
</pre>

====================================================================== Einde pagina 29 =================================================================

<br><br>====================================================================== Pagina 30 ======================================================================

<pre>13963420
     Contents
             The case  for kickstarting the green hydrogen economy
             NortH2   Objectives   & Project Overview
             Demand, Initial Design & Cost    Estimate
             Economics &    Competitiveness
             Closing the Value   Gap
             Outlook  to  Beyond   2030
             Conclusions    Feasibility Study  Phase 1
                                                                   30
     NortH.,
                                                                      1145
</pre>

====================================================================== Einde pagina 30 =================================================================

<br><br>====================================================================== Pagina 31 ======================================================================

<pre>13963420
     Conclusions
    The NortH2 approach    has  potential  to meet its ambitions and     goals, based    on the  outcomes    of the pre-feasibility study
                 Technical feasible
                   » Wind farm developments, green hydrogen production and infrastructure can be realized in the envisioned
                     time frame
                   » No showstoppers, but innovation and scale required to realize the ambitions
                 Market
                  »  Potential large market for conversion of industrial heating (direct and indirect) from natural gas to hydrogen
                  »  Potential alternative market for feedstock with only H2 demand as alternative for blue hydrogen
                  »  Confirmed by first interviews with the market
                  High initial costs but potential to reduce
                  »  Main cost components in windfarms and electrolysis; result in a base case price of approx. 3.8 EUR/kgH2
                  »
                     Programmatic approach to lower component costs and allow optimization over the value chain to approx. 3.0         EUR/kgH2
                  »  Existing policy measures could help to close the value gap, but are not yet fit for purpose
                  Next steps
                   » Validate   outcomes  and assumptions with relevant stakeholders
                   » Start  programmatic planning towards implementation
     NortH.,                                                                                                                               31
                                                                                                                                              1146
</pre>

====================================================================== Einde pagina 31 =================================================================

<br><br>====================================================================== Pagina 32 ======================================================================

<pre>13963420
     Back-up Project
            -
                     Deliverables
                                  04 March 2020
</pre>

====================================================================== Einde pagina 32 =================================================================

<br><br>====================================================================== Pagina 33 ======================================================================

<pre>13963420
     Deliverables                      phase               1a
             hase #  | Topic                                                                         Work   stream         Format
                  0    Integrated   Narrative                                                        All                   memo
                  1    AC/DC Cable       Discussion  {Electricity transmission options)              Offshore wind         memo
                  2    Technical maturity of the   supply chain description                          Offshore wind         Powerpoint presentation
                  3    Scope   and  cost estimate & cost   projections of major components           OHshore wind          memo
                  4    Optimal capacity factor and sensitivities to uncertainties incl. overplanting Offshore wind
                  5    Rapid scale-up potential and supply chain (includes Impact assessment North2) Electrolysis          Powerpoint presentation
                  6    State-of-the-Art                                                              Electrolysis          Powerpoint presentation
                  7    Terms of Reference summary                                                    Electrolysis          Powerpoint presentation
                  8    Optimal electrolyser dimensions in conjunction with wind firm size            Electrolysis
                  9?    H2 Backbone development description                                          Transport  & Storage  memo
                  10   Flexibility needs and storage                                                 Transport & Storage   memo
                  11   Pressure regimes electrolyser vs. transport {Compressor deployment)           Transport & Storage   memo
                  12   H2 End-user technology description                                            Market                     .
                              —                  :                 os
                                                                                                                          Combined   memo   and database spreadsheet
                  13   Description of H2 Premium markets (prioritization)                            Market
                  14   Key policy enablers                                                           Market                Word document
                  15   Model Structure and Functionality Description in the Model                    Business Case         Prepared  in the Excel Model
                  16   Reporting on key results (LCOH2}                                              Business Case         in the Narrative
                  17   Value Gap Description                                                         Business Case         in the Narrative
                  18   Role of Hydrogen in the future energy mix of NL                               Role of H2            Memo
                  19   Benefits from H2   as  part the future energy system   to society             Role of H2            In PowerPoint Presentation
                  20   Why   do  we  have  to do this in the North   (ppt)                           Role of H2            In the Narrative  {and Ppt.)
                  21   Why large scale project     now                                               Role of H2            In the Narrative  (and Ppt.)
     NortH.,                                                                                                                                                         33
                                                                                                                                                                        1148
</pre>

====================================================================== Einde pagina 33 =================================================================

<br><br>====================================================================== Pagina 34 ======================================================================

<pre>13963420
     Deliverables                  phase             1b
            blige #  | Topic                                  Work   stream           Format
                  1    Integrated Narrative                   All                     report
                  2    Narrative presentation                 All                     Powerpoint presentation
                  3    business case model                    All                     excel document
                  4    Programmatic Approach                  Programmatic Approach   memo
                  5    Commercial optimization                Commercial optimization Powerpoint presentation
                  é    Beyond   2030 -
                                       Memo                   Beyond  2030            memo
                  7    Beyond 2030 Calculation model
                                     -
                                                              Beyond  2030            Excel document
                  8    Marketing Strategy                     Market                  Powerpoint presentation
                  ?    Interview summaries                    Market                  memo
                  10   Quantification of Policy Enablers      Business Case           Powerpoint presentation
                  11   Role of Hydrogen in 2030 OPERA results
                                                  -
                                                              Role of H2              PPT and memo
     NortH,                                                                                                04 March 2020
                                                                                                                         1149
</pre>

====================================================================== Einde pagina 34 =================================================================

<br><br>