Green Hydrogen Meets Wind in Ørsted’s Bold Bid

March 22, 2019 Articles & PR | Market insights | Offshore 3 min read time

Ørsted’s bid for Dutch offshore wind includes green hydrogen—and cost modeling shows zero-subsidy bids are still viable.

Ørsted has announced its participation in the Dutch South Holland Coast 3 & 4 offshore wind tender, with plans to integrate green hydrogen production via electrolysis as part of the project vision. According to Ørsted CEO Henrik Poulsen:

“Using offshore wind to produce green hydrogen from electrolysis is an enabler to decarbonize other sectors such as heavy industries and transport” .

This highlights the increasing role of sector coupling as a differentiator in zero-subsidy offshore wind bids.

CAPEX and LCOE Trends: 2010s to Today

Using the Youwind Model, the team compared historical and projected values for South Holland Coast 3 & 4:

Turbine rating: From 3.6–4 MW (10 years ago) to 12–15 MW (expected)

Total capacity: 700 MW

CAPEX: Reduced from over €2.2 billion (historically) to around €1.1 billion

LCOE: From €85.5/MWh down to €66/MWh

This sharp cost reduction is attributed to:

Larger, more efficient turbines

Supply chain maturity

Digital pre-design and logistics modeling

More bankable yield assessments

According to Youwind’s model, the internal rate of return (IRR) under current market prices exceeds 6%, even with zero-subsidy conditions.

Innovation is the New Baseline

In a market where zero-subsidy bids have become the norm, developers are under pressure to present value-adding strategies, not just cost cuts. Ørsted’s green hydrogen angle signals this shift.

At the same time, competitors like Vattenfall—who won the last Dutch offshore bid—are expected to respond with their own innovations.

Precision Planning Enables Zero Subsidy

The evolution in offshore wind costs and modeling accuracy, enabled by platforms like Youwind, allows developers to make informed, de-risked decisions that are competitive even without government support.

Ready to simulate your own zero-subsidy scenario for Hollandse Kust or South Holland Coast?

Book a demo or visit the Knowledge Center

Written by Edvald Edvaldsson, Founder and CTO

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