Why the hydrogen network is starting with industrial clusters
Industries are faced with the challenge of becoming more environmentally sustainable. In many cases, this can be achieved by electrifying processes. However, it is impossible to achieve full sustainability in this way. Hydrogen can replace fossil fuels in cases where electrification is not technically or economically feasible. And in processes that use hydrogen as a feedstock, sustainable hydrogen can replace the currently used grey hydrogen.
Although businesses want to become more sustainable, they also express a need for certainty, particularly regarding costs and the availability of environmentally friendly raw materials and reliable energy. In addition, sustainability efforts can only succeed if reliable infrastructure is available in a timely manner. That point was emphasised in the recent report from Wennink.
That is why Hynetwork is working to develop this infrastructure, starting with industrial clusters. Why start there? Because of the way industrial clusters are structured and the role they play in the energy system.
Industrial clusters in the Netherlands
Industrial clusters are areas where energy-intensive companies are located in close proximity to one another. There are six large clusters in the Netherlands, including Rotterdam-Moerdijk, Zeeland-West Brabant, Chemelot, the North Sea Canal Area and the Northern Netherlands. In addition to these five key clusters, there are industrial companies scattered throughout the country, such as paper and brick factories. Those companies are collectively referred to as the sixth cluster.
Much of the energy-intensive industry is located in these clusters. Examples include chemicals, fertiliser production and steel. These are processes that require a lot of energy and often high temperatures. In some cases, full electrification is not possible or sufficient.
Shared infrastructure
It is no coincidence that companies choose these locations. Doing so allows them to share infrastructure, such as ports, railway lines, roads and energy facilities. Many companies also operate in the same or adjacent production chains. This makes it possible to efficiently exchange raw materials and waste streams such as heat and gases. A waste product for one company may be valuable to another.
Since companies are located close to each other, the area can function like a new neighbourhood: instead of installing a separate water line for each house, a single main line is installed for the entire neighbourhood. This is faster and more cost-effective, and it prevents you from having to dig everywhere at once. The same logic applies to the infrastructure for the energy grid.
European and Dutch interests
Our industries make the products that drive the whole of Europe. Think of steel for bridges and buildings, or chemical raw materials for medicines and plastics. These products are vital to many sectors, from construction to the automotive industry.
The Netherlands plays an important role in this context. Our industrial clusters and ports make us part of European production chains. What arrives in Rotterdam is processed in Chemelot, and what is made there continues on to German car factories.
These industries provide many jobs and make a significant contribution to our economy: directly in the factories and indirectly through suppliers, transport companies and maintenance firms. In other words, it is not just about production itself, but also about the jobs, knowledge and craftsmanship that come with it. That is why it is important that industrial companies remain in the Netherlands and Europe. But for that to happen, we need to ensure the right conditions in terms of infrastructure and sustainability.
Hydrogen in the energy system
Industry is under increasing pressure. According to Wennink, high energy costs and international competition are putting pressure on European industry. At the same time, industry must become more sustainable. This dual challenge can only be met if companies have access to affordable and reliable energy. Hydrogen can play an important role here.
But a nationwide hydrogen network cannot be built everywhere at once. That is why it is being developed in stages, starting with industrial clusters.
A logical starting point for the hydrogen network
Demand for hydrogen is greatest and most concentrated in industrial clusters. This means that infrastructure can be used intensively from the outset. A larger pipeline can transport more hydrogen than several smaller ones, which helps to keep costs manageable.
In addition, these clusters bring together the import, storage and use of hydrogen. This helps to ensure that the system is reliable. As with the natural gas network, hydrogen infrastructure must be available all the time. By starting here, the network can grow step by step and companies will have the certainty they need.