Industrial clusters: teaming up for a rapid energy transition

Industrial companies across the Netherlands are searching for ways to switch to sustainable forms of energy. Working together can make that more efficient. After all, you are stronger together, also when it comes the energy transition. That is why seven companies in East Groningen have teamed up.

The East Groningen Industrial Cluster consists of seven companies with 14 production sites in a 40 km radius of Veendam, ranging from Delfzijl to Emmen. The companies in this cluster are Nedmag (magnesium salt), Royal Avebe (potato starch), Solidus Solutions (cardboard packaging), Kisuma (stabilisers for plastics), Strating (brick suppliers), Eska (graphic board) and Smurfit Kappa Twincorr (corrugated cardboard). They are still major consumers of natural gas (together about 240 million cubic metres a year), but they have teamed up to search for more sustainable forms of energy and join forces in the energy transition. After all, what fails for a company or location acting alone may succeed when done together.

A stronger voice to the government and purchasing and building infrastructure together are some advantages of joining forces. While other industrial clusters in the Netherlands are more centralised, for example around the Port of Rotterdam, companies in the northern Netherlands are located over a wider area. And that requires regional customisation. HyNetwork – a wholly owned subsidiary of Gasunie responsible for the Dutch hydrogen network – is investigating how the 14 production sites can be connected to the hydrogen network.

Erik Koops (Director of the Energy Transition and Utilities at Avebe): ‘We found that the solutions that work for the big clusters like Rotterdam or Chemelot don’t work for us. Since we’re spread over a larger area, laying one large pipe or cable isn’t the solution. Our situation requires customisation.’

‘The situation in East Groningen is not an isolated one. There are tens of thousands of companies in the Netherlands facing similar problems. The integrated approach in East Groningen, which involves provincial/regional authorities, TenneT, Enexis and Gasunie, is delivering results and can be an inspiring example.’