Energy Transition, Hydrogen

December 16, 2024

Netherlands hydrogen pipeline network delayed by three years to 2033

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HIGHLIGHTS

Timeline slip due to permitting delays, personnel constraints

First section operational by 2026, industrial clusters by 2030

Connections between clusters to take place 2031-2033

The planned Dutch national hydrogen pipeline network will not be completed until 2033, a delay of three years to previous plans, network developer Gasunie said on Dec. 16.

Obtaining permits for pipeline construction and operation was taking much longer than expected, and Gasunie has also run up against personnel constraints to deliver projects, it said.

"The hydrogen market as a whole is not developing as fast as expected, and the infrastructure is unfortunately no exception," Gasunie Business Development Hydrogen Manager Helmie Botter and Hydrogen Network Netherlands Director Joost Hooghiem said in a statement.

"We find this delay extremely regrettable and understand that this has an impact on the market," they said.

A first section in Rotterdam will enter operations by 2026, with other parts of the national infrastructure commissioned over the subsequent years, focused along industrial clusters on the Dutch coast.

The Netherlands officially started construction of its planned 1,200-km hydrogen pipeline in October 2023, with a first 30-km section in Rotterdam.

Gasunie said the networks in coastal clusters would be ready by 2030, including connections to Belgium and Germany, as well as salt cavern storage in Zuidwending.

The connections between the clusters will take place between 2031 and 2033, using converted natural gas pipelines and new hydrogen pipelines, Botter said.

Gasunie said personnel capacity was scarce.

"None of the parties involved has unlimited capacity," Hooghiem said. "This applies to Gasunie, firms of consulting engineers, contractors, firms that perform environmental studies, and government departments and agencies."

Botter said the delayed timeline to the Delta Rhine Corridor was "a major setback," with the completion date moved back to at least 2032 from a previous date of 2028.

The Delta Rhine Corridor is subject to a joint permitting process for hydrogen and CO2 pipelines.

Botter said Gasunie was having conversations with stakeholders to assess the impact, and noted the delay was "difficult" for many.

"The picture emerging from those discussions is that people can more or less live with the development in the coastal clusters in or before 2030," Botter said. "The timing after that is difficult, as 2030 may be a tipping point for hydrogen. And we understand that concern."

Hooghiem said companies had been planning for a 2030 implementation, and without the pipeline infrastructure they may have to delay plans.

Botter said the company was working to accelerate the timeline where possible, but noted that infrastructure was just one element in getting the low-carbon hydrogen economy up and running.

"The price of sustainable hydrogen is still too high for many potential customers," she said, adding that producers and consumers were hesitant over investment decisions because of the price and regulatory uncertainty.

Platts, part of S&P Global Commodity Insights, assessed the cost of green hydrogen production via alkaline electrolysis in the Netherlands, backed by renewable power purchase agreements, at Eur14.18/kg ($14.89/kg) on Dec. 13, up from Eur10.19 a month before.

The assessment reflects one possible pathway for producing EU Renewable Energy Directive-compliant green hydrogen.


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