Europe’sambition to become the world’s first climate-neutral continent by 2050 presentsseveral challenges in the domain of variable renewable energy generation andthe development of sustainable energy carriers. In support of this mission, theNorth Sea is identified as a promising energy source, to be efficientlyharnessed through the deployment of system-integrated offshore energy hubs combining wind farms withoffshore electrolysis. The discussion around hydrogen’s role as a renewablefuel in a high variable renewable energy energy system and its contribution tostable, systemic decarbonisation is acknowledged and relevant literatureexamined.

TenneT,alongside other European TSOs, has proposed certain hub layouts as a part ofseveral studies and reports looking into the various aspects of ofshore enegryhubs. However, limited information exists on the financial attractiveness ofthese conceptual hubs for investors and developers. This study aims todetermine the optimal configuration of such energy hubs from the standpoint of economic viability.

A modularmathematical model is developed to represent offshore energy hubs, enabling thetesting of multiple configurations across various energy scenarios. Parameterssuch as electrolysis capacity, interconnection capacity, and ownershipstructures are varied, generating a range of configurations evaluated underdifferent price profiles for electricity and hydrogen. The model is applied to a case study based on the2x2 GW offshore hub configuration, aligned with the North Sea Wind Power Hubprogramme. Results point to a weak business case for electrolysers under thedatasets used. However, configurations featuring smaller electrolysers co-ownedwith relatively larger wind farms exhibit lower investment costs and greatereconomic benefit compared to those with larger electrolysers and smaller windfarms.

The thesisextends the analysis to consider implications for policy, tendering procedures,and broader socioeconomic dynamics. Strategies such as phased build-out andpublic ownership of power-to-gas infrastructure are explored as potentialenablers of hydrogen integration into offshore wind systems. Finally, concernsabout energy security, heightened by recent disruptions in global supplychains, particularly in the energy sector, are discussed. This shifts the focusbeyond pure economic considerations, toward the strategic value ofsystem-integrated offshore hubs and their supporting infrastructure.