Full statement: Hydrogen action plan
The future of the European industry is uncertain. On the one hand, high energy prices undermine competitiveness, while on the other hand, geopolitical tensions threaten the global supply chain. Industrial production has already entered a downward trend. Europe has become aware of its industrial vulnerability, which also puts the continent's prosperity at risk. For the Dutch industry, the situation is even more dire, as we are also facing even higher energy prices within the European context. This additional vulnerability must be translated into extra focus and extra action in the Netherlands.
Recently, the European industry advocated for reforms in the so-called Antwerp Declaration to strengthen competitiveness. Sustainability, innovation, and energy security were the key words. In his recent report, Mario Draghi also advises the European Commission to reform the industry, to improve competitiveness and safeguard Europe’s strategic autonomy. Europe must remain a leader in the fight against climate change, while at the same time protecting and sustainably further developing and expanding its industrial base. Among other things, Draghi advocates for a coordinated European approach to achieve an affordable and sustainable energy supply.
The energy transition and the future of the industry are closely linked, in Europe, but especially in the Netherlands due to the high prices. The greening of energy and raw materials supply must enable the achievement of climate goals and, at the same time, ensure that the industry maintains and strengthens a future-proof and internationally competitive position.
That dual task of climate policy and green growth is no small feat. It means that we must rapidly further decarbonize the energy supply. On the one hand, through continued electrification of industry, mobility, and the built environment. On the other hand, by realizing a serious supply of green molecules. Because in addition to electrification, the industry, in particular, has a great need for green molecules, as fuel and raw material. That is why green hydrogen molecules are an essential part of the future energy system.
As a traditional trading nation and historical energy exporter, Draghi’s European perspective offers development opportunities for the Netherlands. We can take a leading role in Europe. A good start has been made with the new cabinet; with the Ministry of Climate and Green Growth, business conditions are rightfully back on the Dutch agenda.
It is important to choose a strategic position in the emerging European clean industry policy. By forging ‘proactive coalitions,’ companies, governments, industrial clusters, research institutes, and financiers can build a sustainable, future-proof (European) industry as part of a robust economy.
Hydrogen plays a leading role in both the energy transition and the raw material transition. Policy and action must be developed hand in hand by these proactive coalitions. So, collaborate. With a focus on hydrogen, always keeping in mind the integrated energy system and within the broader context of European industrial policy. We follow four simple mottos:
- Take up the European challenge from the Netherlands.
- Make it happen in practice.
- Solve it clearly and reliably for the long term.
- Do it together and hold each other accountable.
Based on these four mottos, proactive coalitions can undertake a series of actions. About half are directly related to hydrogen, while the other actions focus on industrial policy and the general approach. Together, this action agenda forms the recipe for a sustainable energy system, a future-proof industry, and a robust economy as the foundation for European prosperity.
We would like to further develop this together, and below we provide the starting point. At the same time, we also call for a solid and thoughtful approach and implementation of the Draghi report from the Netherlands in the short term. Together, we should be able to achieve this in the Netherlands within 100 days.
1. Take up the European challenge from the Netherlands
The Netherlands is not an island in Europe but a prominent part of a strong and strategically autonomous new Europe. This requires self-awareness, but above all, the willingness to collaborate and look beyond borders.
- Strengthen and innovate the industrial mega-cluster in Northwest Europe by promoting collaboration between clusters in the Netherlands, Germany, and Belgium. Strengthen the mutual infrastructure, especially for energy carriers with a focus on reducing total costs. Ensure scaling/bundling to achieve good and cheaper production, import, and conversion. Provide the industry with clarity and support by driving unambiguously and harmonized at the European level towards ever-lower CO2 intensity, with the proactive application of existing policy instruments such as ETS and CBAM.
2. Make it happen in practice
For a Dutch leading role in European industrial politics to be economically successful, it is essential that the hydrogen hub actually comes to fruition and that hydrogen can reach the industry. All involved parties have a shared responsibility in the realization of a functioning hydrogen market.
- Ensure that the Dutch (infra-) transport connections from North to South and from East to West – including international connections – are operational by 2030, as well as hydrogen storage in caverns.
- Develop the potential of offshore energy in the North Sea. First, deliver the energy to the coastline in the form of electricity and partially convert it into hydrogen. Then stimulate that new distant wind farms can be equipped with electrolysis capacity so that they can bring the produced energy ashore in the form of hydrogen.
- Ensure efficient and fast spatial integration of crucial elements (such as electrolyzers and import terminals) of the hydrogen economy in large port and industrial complexes. This not only requires sufficient physical space but also sufficient environmental space. Ensure connections to the hydrogen and electricity grid for energy intake and output. Be clear about the network tariffs for electrolysis: reducing grid congestion and lowering the investment burden on the power grid justify, as in other countries, an internationally competitive rate.
- Develop import chains for hydrogen carriers – ammonia, LOHC, and liquid hydrogen – and ensure connection to the transport connections, with an eye on serving the national demand for hydrogen as well as transit to the European hinterland. Create this based on integrated value chains and joint investments (both sides of the ocean). Seek collaboration in the Brussels-launched Team Europe, in which our neighboring countries Germany and Belgium are also actively involved.
- Develop and stimulate, particularly in the Eemsdelta and Rotterdam, the production of blue hydrogen and facilitate the removal of CO2 from the industrial clusters to the Dutch North Sea. This as a forerunner and driver of the growth potential of green hydrogen produced in the Netherlands or imported via the ports.
The hydrogen hub is part of the Dutch energy system. Therefore, the connection and interaction with the electricity, natural gas, and heat markets are crucial. In this way, hydrogen, together with the dynamization of electricity demand and other storage systems, can contribute to an affordable and reliable electricity supply. Hydrogen can also, especially through the heat released during electrolysis, but in the future also through direct applications, contribute to an affordable and more robust heat supply.
3. Solve it clearly and reliably for the long term
There must be clarity about the level playing field for Dutch industry and about building new competitiveness. At the same time, there must also be clarity about the ambition and willingness or commitment of the industry to invest in the Netherlands.
- Focus structurally on innovation so that new chains, smart production processes, and circularity can be established. Shape this through multi-year public-private partnerships, driving major industrial transitions. Structure the support of selected innovations and technology from our own country for a longer period.
- Provide explicit space for new industrial, logistical, and port-related activities in the existing large clusters. This also drives innovation in those existing clusters. Develop regional clusters with a focus on circular industry and provide clarity and certainty about the connection to infrastructure for hydrogen and CO2. Prioritize clusters in electricity grid expansions. Focus on a proactive approach to regulations (permits) and regulations for these regional clusters, so that speed and purposefulness are ensured, and the potential of shorter and faster chains in these clusters is fully utilized.
- Support the industry in such a way that, over the next ten years, the difference between the use of fossil energy and clean energy is largely (and progressively) compensated, provided that the industry also invests immediately in production capacity for clean and/or circular processes. Additionally, use the tailor-made agreements for one-time support to the existing industry to not only achieve clean and/or circular processes but also increase added value and reduce energy intensity. Focus on a very limited number of large emitters so that speed is achieved and breakthroughs occur. Binding agreements for investments for these companies and for the public sector are part of these tailor-made agreements.
4. Do it together and hold each other accountable
These major transitions can only be successfully brought about when leadership and cooperation go hand in hand, and when there is engagement in society.
- Form a broad coalition to improve societal engagement in industrial renewal. For a successful sustainable energy and raw material supply, it is necessary to strengthen the perspective and image of the industry in society. The license to change is essential for societal acceptance of the transition, but equally indispensable for enthusing and stimulating the younger generation to be part of it.
- Form and/or strengthen regional coalitions (as has been done within the NOVEX areas), in which the industry is offered development space and the energy sector and port and development companies are given room for investments. Companies in these coalitions have a duty of care for their environment and contribute to social cohesion and support for the transition. In this way, clusters of societal ecosystems are created where the economy flourishes, and there is much attention to education, research, infrastructure, and housing.