Over the coming years, Gasunie subsidiary Hynetwork will be rolling out the national hydrogen network for the Netherlands in various stages. The first section will be ready for use in Rotterdam by no later than 2026. In subsequent years, the infrastructure will become available in the industrial clusters along the Dutch coast; this will be completed before or in 2030. This means that the hydrogen network will not be ready in 2030, but by 2033 at the latest. Helmie Botter, Business Development Hydrogen Manager at Gasunie, and Joost Hooghiem, Director of Hydrogen Network Netherlands, explain the current status. ‘The hydrogen market as a whole is not developing as fast as expected, and the infrastructure is unfortunately no exception. We find this delay extremely regrettable and understand that this has an impact on the market. So, we remain committed to putting the network in place as soon as possible.’

In 2022, the former Dutch Minister of Energy & Climate Policy Rob Jetten commissioned Gasunie to build a national hydrogen network. What was the plan at that time?

Joost Hooghiem: ‘Industry needs hydrogen to become sustainable. The mission is to build a hydrogen network to connect the five major industrial clusters in the Netherlands with each other, and also to create connections with networks in Germany and Belgium, and with the underground hydrogen storage facility in Zuidwending.

Helmie Botter: ‘That mission hasn’t changed, but the timing is different. The original idea was to have the network fully operational in 2030. Now that a few years have passed, we regret to say that that timeline is largely unachievable. Construction of the network in Rotterdam has already begun; that section will be ready in 2026, bang on time. The preparations for the other clusters are in full swing.’

So, Rotterdam is on time, but the implementation of everything else has been delayed. What does the new phasing look like?

Joost: ‘The plan is to have the national hydrogen network ready by 2033 at the latest. We are working toward that goal in phases. As mentioned previously, the first hydrogen will flow through our network in Rotterdam in 2026. The networks in the other coastal clusters will be ready by 2030 at the latest, including a connection to Belgium from Zeeland and a connection to Germany from the northern part of the Netherlands. The salt caverns for hydrogen storage in Zuidwending can also be connected at that point.’

Helmie: ‘In the period from 2031 to 2033, we will build the connections to connect the clusters. The Delta Rhine Corridor, a new pipeline system running from Rotterdam to Boxtel, is part of that work. Converted natural gas pipelines will be used for many connections in the hydrogen network.

Why has the timeline been delayed?

Joost: ‘There are two main reasons. First, the procedures to obtain permits are taking much longer than we estimated beforehand. Both construction and operation of hydrogen pipelines require a permit.’

Helmie: ‘After the announcement in 2022, the new Dutch Environment and Planning Act came into effect. We knew that this law was coming, of course, but couldn’t determine exactly how it would play out in practice.’

Joost: ‘Citizen participation has become much more important under that Act. We knew that citizen participation was important before, but, under the new law, it simply takes more time than in the past. And there are more interdependencies between the permitting process and the engineering than we anticipated beforehand. Studies of the flora and fauna around the construction site or archaeological reports are more likely to have an impact on the design. We thought we could launch a number of those procedures in parallel, but it turns out we can’t, which increases the lead times.’

‘The second reason is the scarcity of sufficient and qualified personnel. None of the parties involved has unlimited capacity. This applies to Gasunie, firms of consulting engineers, contractors, firms that perform environmental studies, and government departments and agencies.’

What is the relationship between Gasunie’s hydrogen network and the Delta Rhine Corridor?

Helmie: ‘The new hydrogen pipeline in the Delta Rhine Corridor is part of the national hydrogen network. But the Delta Rhine Corridor involves more than hydrogen alone. The government recently decided that the Delta Rhine Corridor will be subject to a joint permitting process for the hydrogen and CO₂ pipelines.

‘Just before the summer of 2024, the former Minister, Rob Jetten, decided that a joint procedure needed to be followed for all the modalities that were included in the Delta Rhine Corridor at that time. This meant a delay in the timeline, moving the completion date from 2028 to at least 2032. That was a major setback. Since the summer, then, we have been looking into alternatives for transporting hydrogen and CO₂. ‘Gasunie also worked on a detailed integrated timeline, together with the Ministry and the other initiators, such as TenneT for the DC cables and the Port of Rotterdam Authority for the ammonia pipeline. Based on that timeline, it became clear to us that the infrastructure would not be available before 2040 if all these modalities had to be included at the same time. From the perspective of making industry more sustainable, earlier availability of the Delta Rhine Corridor is of great importance. This is why the government decided in early December to prioritize the construction of the hydrogen and CO₂ infrastructure. That decision means that 2031 to 2032 is feasible for hydrogen, and 2032 to 2033 for CO₂. Our alternatives would not have been ready before these envisaged completion dates.'

How did people react when they first heard about the delay?

Helmie: ‘We believe it important to start speedy and personal discussions with stakeholders wherever possible in order to understand the impact of the updated timeline. So we have already had some initial meetings. 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. The timing after that is difficult, as 2030 may be a tipping point for hydrogen. And we understand that concern. After all, many policy goals focus on 2030.

‘We don’t want to give the impression that we are simply going to accept and work to these timelines. We will work with the parties involved to deliver as quickly as possible. In addition, we will collaborate intensively with the government and other parties to actually get hydrogen supply and demand up and running. Because infrastructure is just one of the obstacles standing in the way of a functioning market. The price of sustainable hydrogen is still too high for many potential customers. And there are still many uncertainties in the Netherlands and Europe, such as exactly what regulation will be introduced. As a result, both producers and customers are hesitant about making major investment decisions.’

What are you saying to companies that have had to delay their sustainability plans?

Joost: ‘Everyone is urging us to speed things up, which is understandable of course. We are going all out to deliver as fast as possible. We are looking for ways to bring forward the completion time.’

Helmie: ‘The delay is unfortunate to say the least. Businesses are not happy with the timeline as it stands. And neither are we. Industrial companies have prepared plans based on a 2030 horizon. But if the infrastructure is not there, they will have to delay making their production processes more sustainable. We all want a more sustainable world. And we want industry to stay in the Netherlands. That's important for prosperity and employment in the Netherlands. Energy is cheaper in other parts of the world, but the Netherlands offers huge opportunities with its ports, infrastructure and geological salt structures that are ideal for storage. Speed is of the essence if we want to exploit those opportunities. Our task in that interplay of interests is to build the necessary infrastructure. We are working hard to do just that. Unfortunately, we are also restricted by the delays that everyone faces.’

Joost: ‘I can’t wait to start the construction work, but we have to run through all the procedures before shovels can go into the ground. Countless project teams are trying their hardest to bring the timeline forward as much as possible. The permitting process is the most time-consuming activity. So we will sit down with central government to investigate whether and how we can shorten permitting times, while still maintaining due diligence.’

Does construction of the floating LNG terminal at Eemshaven in 2022 offer any methods or strategies to shorten lead times?

Joost: ‘Because of the gas crisis, we succeeded in getting that terminal operational in just six months. We were able to push on at speed because the authorities let us start work before the permit was issued. But remember that that terminal was built in an industrial area. Building a pipeline in close proximity to residents is a completely different situation. And we also want to respect the democratic right of local residents, landowners and others to have their say. On the other hand, as we are going to convert an existing natural gas pipeline to hydrogen, you can question whether a full permitting process is appropriate. We are only going to replace the valves. That means we only have to work in a few places. A slimmed-down permitting process might well be a good solution.’

There are also companies located outside the five major industrial clusters. What does the new timeline mean for these ‘sixth cluster’ companies?

Helmie: ‘All the companies in the sixth cluster can, just like industrial companies in an industrial cluster, be connected to the hydrogen network. The timing will depend on the exact location. As the work to convert and construct the main grid progresses, branch pipelines to companies in the sixth cluster can also be built.’

Joost: ‘We are urging companies to formally confirm their interest if they want a connection.’

Helmie: ‘Companies in the sixth cluster can play an important role in establishing the hydrogen value chain. In the northern part of the Netherlands, for example, we see a number of large hydrogen production projects. Sixth-cluster companies on the demand side in this region can contribute to the creation of a hydrogen value chain in the northern part of the Netherlands as well.

‘Once everyone knows for sure that the network will be put in place, interest among other parties will also increase. Market participants will no longer be held back by concerns about infrastructure risk. This is happening already in Rotterdam. The construction work has started there, and all kinds of companies are submitting applications for a connection.’

How sure are you of the current timeline? What is the likelihood of new adjustments?

Joost: ‘The old timeline made little allowance for setbacks. The current timeline is based on probability and takes into account risks that may result in delays as much as possible. Our current approach is to announce two completion dates per hydrogen network section: one date based on a p50 timeline and one date based on a p90 timeline. In the case of the p50 date, we estimate a 50% probability of completing the pipeline section in question on schedule. The probability in the case of the p90 date is 90%. So we are giving market participants more accurate information about the timeline and risks to help them more effectively assess their own risk exposure.’

Helmie: ‘We would like to look at the timeline in detail together with the regional authorities and parties to review possible opportunities for getting the work done as quickly as possible. What risks can we eliminate through joint action to ensure that the infrastructure is built there as soon as possible? What can we jointly do to get the hydrogen market up and running? After all, we have a shared goal of making industry more sustainable, making the Netherlands the leading hydrogen hub in north-western Europe, and achieving a sustainable and prosperous Netherlands.

‘We are going to discuss this with the appropriate parties, based on the proposal to adjust the roll-out plan. After consultation, we will amend the plan and submit it to the Dutch Minister of Climate Policy and Green Growth, who will then determine the final roll-out plan.’