Market players want to work together to realise the hydrogen network

Source: www.gulfoilandgas.com 1/22/2025, Location: Europe

The creation of the hydrogen network in the Netherlands will take longer, announced Hynetwork, a subsidiary of Gasunie, in their recent presentation of the updated proposal to change the roll-out plan. The hydrogen network will not be ready by 2030 as originally planned, but by 2033 at the latest. This is inconvenient for businesses, but market players have signalled their intention to do everything possible to sustain the momentum. This will require improving the investment climate for industry and the government stimulating the development of the hydrogen market.

Hynetwork is now accepting comments about the new proposal to change the roll-out plan. Helmie Botter, who is responsible for developing hydrogen activities at Gasunie, explains: ‘We are taking the input from the market into account when finalising our proposal for the roll-out plan, and we are discussing the detailed timetable with players in the clusters. This coordination and cooperation should result in eliminating as many risks as possible so we can maximise the speed of implementation. We will also focus our joint efforts more strongly on getting the hydrogen market up and running. We also will involve public authorities in this.’

Four representatives from the industrial clusters responded to the new proposed hydrogen network roll-out plan. Koos van Haasteren, Executive Director of Chemelot

'Pipelines have always been a lifeline for Chemelot. To make our chemical park more sustainable, we need competitive hydrogen and want to be able to remove CO2. Although politicians are doing a lot to get the pipelines laid, the result so far is that Chemelot will not be connected to hydrogen and CO2 pipelines until six years after Rotterdam. You can imagine our feelings about that.'

'The new roll-out plan and associated timeline that Gasunie has announced provide the clarity we need about construction of the infrastructure. But the companies at Chemelot do wonder how they will get through the period between now and 2032. That is still seven years away! The value chains are under pressure and must still be in place by then. And a lot more things need to happen to build confidence in a good outcome. Electricity is 50% cheaper in Belgium and Germany than in the Netherlands. We also have a national CO2 tax. These are two major factors that undermine the investment climate in the Netherlands. We also struggle with grid congestion, connection costs and permits. We need a level playing field on a global scale, but the situation is getting worse rather than better.

That said, we note that there is a desire and commitment to manage away the risks in carrying out the transition. How? By putting everyone’s disappointment at the delay behind us. We need to technocratise and depoliticise the construction of essential infrastructure. Let’s put the best civil servants and engineers together to speed things up as much as possible.

We will team up with Gasunie in January. The province of Limburg is a stakeholder, so they are also joining us. The central question is can we speed up implementation? It promises to be a constructive collaboration. We want to see what is feasible and possible.

The challenges involved in the climate and resource transitions are enormous. We have never tackled two transitions at the same time before. But I believe in it! It’s only logical that we need to collaborate more. It will take a public-private coalition to get the transitions done. We could do with a bit more urgency and boldness. That collaboration and much-needed entrepreneurial spirit is now emerging.’ Barbara Huneman, Director for Cluster 6 companies

'Gasunie’s new timetable provides greater clarity about the development of hydrogen infrastructure, but there is still a lot of uncertainty for Cluster 6 companies. Cluster 6 includes industrial (manufacturing) companies such as brick, paper and glass factories that are not located in any of the five major clusters. The hydrogen network will be laid first in the five major clusters, and then the connections between them, and only then will Cluster 6 companies have their turn.'

'We looked at sustainability options for 330 production sites in the Netherlands for 2030. The vast majority of those plans cannot be implemented because electricity or hydrogen will not be available. If you cannot switch off the gas because there is no alternative, companies do not invest, or they close their sites because investing in fossil fuels is no longer an option for most of them either.

Unfortunately, Gasunie’s new roll-out plan has not yet solved the chicken-and-egg problem. Gasunie is not in charge of the hydrogen itself, and that is still very expensive. And because Cluster 6 companies are on the periphery, and thus require more infrastructure to be built, I expect it will always be an expensive option. The roll-out plan is important, but it is not enough for Cluster 6 companies to get investment projects for sustainable production facilities moving. In addition to infrastructure, we need a competitively priced product.

To keep the momentum going, I urge us to focus. In addition to rolling out the national network, let’s start working with hydrogen in one or two pilot regions so we can take concrete steps and apply the lessons elsewhere. Brick Valley in Gelderland is one such pilot region: it is home to many companies interested in hydrogen and the preconditions are favourable there. The same applies to the industrial cluster in East Groningen. We have a lot to learn, so let’s do it in one of these regions.' Maarten den Dekker, Chief Sustainability and Digital Officer at North Sea Port

'The industrial cluster in our cross-border port is the largest hydrogen cluster in the Benelux, with an annual consumption of 580 kilotons. That is all grey hydrogen now, and demand will only increase.

It worries us that the timelines for hydrogen infrastructure are being pushed back. Market players want to go just a little faster. And what exactly will the European RED 3 (Renewable Energy Directive) framework mean in terms of obligations for the industry? Can you impose obligations on the industry if there are no opportunities to fulfil them?'

'Along with building the local networks within the clusters first, building the connections between the clusters is also important to us. The import and throughput of hydrogen – and a hydrogen carrier like ammonia – present an opportunity for us as a deepwater port. We still need connections to the hinterland, though, to get it to industrial centres in the Netherlands, Germany and Belgium.

The message about the delay in rolling out the hydrogen network was obviously unwelcome, but we are having constructive discussions with Gasunie on how to get the infrastructure operational as soon as possible. There has just been a new OWE subsidy round for renewable hydrogen production. Coupled with the new roll-out plan, that may start to give a few companies a push to invest. But the question remains: who is willing to pay for green hydrogen? RED 3 and the refinery route are crucial to this.

There is still a whole set of preconditions that need to be met to kickstart the hydrogen market. The infrastructure schedule is important, but there are many other factors that hinder investment decisions. Besides the refinery route and RED 3 implementation, there are uncertainties around power connection tariffs and hydrogen transport costs. The investment climate really needs a boost.

In the first phase, the roll-out of low-carbon certificates can ease the pain of delayed interconnection of clusters. This way, as a customer, you buy a certificate rather than the physical product. This is how we can get the hydrogen market going in the early stages without transport.’

Huibert van Rossum, Energy Transition Programme Manager, External Affairs for the Port of Rotterdam Authority and Director of Programme Office for Industry Cluster Rotterdam-Moerdijk

'We want to become a climate-neutral port with economic and social added value. The Port of Rotterdam also wants to contribute to Europe’s geopolitical resilience. This can be done by remaining a production site for industry and being a hub for renewable energy and green raw materials. That way, we guarantee the security of supply and prosperity of Northwest Europe.'

'Our concern is that the interconnection of markets in the ARRRA cluster (Antwerp, Rotterdam, Rhine-Ruhr Area) will come too late. This will complicate the leap of scale we want to make: from sustainable projects to system change. The market needs a kickstart. The chain will only get going once there is production and imports, once there are pipelines, and once there are buyers. Everything has to happen in parallel. Infrastructure is an essential precondition and precedes the market.

In our view, industry is the driving force that can kickstart that market. My concern is that the new roll-out plan gives too little certainty to companies that want to invest, so it’s good that Gasunie is talking about this with the stakeholders. When Gasunie says the connection will be there in 2031 or 2032, what contract can you sign then? You run into those kinds of uncertainties and that keeps everyone waiting. That’s why we need to kickstart the market together with all the stakeholders and at the same time.

We call on Gasunie and all the other players – the government, licensing authorities, infrastructure companies and industrial customers – to start to plan based on backcasting. Do we want to have a pipeline by 2030? What do we need to make that happen? Let’s work on the timetable together. That is important for industry because companies are bound by all kinds of CO2 reduction requirements.

The position of industry is under pressure. Also read Draghi’s report on European competitiveness: it’s do or die for European industry. Everyone must be prepared to step out of their own comfort zone. With the construction of the LNG terminal at Eemshaven, we have also managed to pick up speed. If we want to accelerate the market for renewable energy and green resources, we will have to approach it in such a way.’


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