Dutch gas grid operator takes €100m FID on first stretch of planned European hydrogen pipeline network
Gasunie will build 30km pipeline between Port of Rotterdam and Pernis, while government’s Groningen shutdown could free up gas pipelines for future repurposing into H2 network
Gasunie, which operates the Dutch gas transmission network, has taken final investment decision (FID) on the first stretch of a proposed 1,200km network of hydrogen pipelines crossing through the Netherlands, Belgium and Germany.
Hydrogen: hype, hope and the hard truths around its role in the energy transition
The Dutch state-owned company will spend more than €100m ($109.5m) on building 30km of new pipelines between the Port of Rotterdam’s Maasvlakte 2 development to the Pernis neighbourhood in Rotterdam.
Gasunie says its hydrogen subsidiary Hynetwork Services will start building the pipeline after the summer, with operations starting in 2025.
Pernis houses the city’s petrochemical refineries including the Shell Energy and Chemicals Park.
Shell announced construction of its 200MW electrolyser at Maasvlakte 2 in June last year, with plans to transport hydrogen once operational in 2025 through Gasunie’s yet-to-be-built pipeline.
“I am proud that we can now make the investment decision for the launch of the national hydrogen network,” said Hans Coenen, the member of Gasunie’s executive board responsible for business development. “This launch marks an important step in the development of the hydrogen chain, which we are taking together with partners.”
Gasunie plans to have the full 1,200km hydrogen pipeline network operational from 2030 to transport molecules from production and import hubs in Rotterdam to industrial users throughout the Netherlands, Belgium and Germany. However, it has not disclosed a timeline on FID for the estimated €1.5bn cost nor the expected start of construction.
While the Dutch government has phased out gas extraction from Groningen since 2014, due to frequent earthquakes, it last week announced it would halt extraction from 1 October this year, albeit with wells kept open in the event of surging gas demand over the winter. The field will be completely shut down in 2024.
This frees up existing pipelines linked to the Groningen gas field to transport hydrogen.
Hynetwork is currently undergoing community consultation for repurposing Groningen pipelines within the Netherlands, with the ambition to complete permitting and take FID between 2024 and 2025 and potentially start up the network by the end of 2026.
“A word of thanks also goes to the Port of Rotterdam Authority, Shell Nederland and the Ministry of Economic Affairs for their constructive cooperation and to our shareholder for their trust,” added Coenen. “We are keen to contribute to the sustainability and security of supply of energy in the Netherlands and other countries in north-western Europe.”
(Copyright)