Port's role crucial in meeting climate goals
Recent Invest-NL research on green hydrogen indicates that importing it through the port of Amsterdam offers an opportunity to meet climate targets and make heavy industry more sustainable. The Netherlands alone cannot meet the future demand for hydrogen and depends on other countries.
The case study was set up in cooperation with Port of Amsterdam, Ecolog and Tata Steel. Importing green hydrogen is costly in the start-up phase, but financially profitable in the long run, according to Invest-NL. Among other things, the organization invests in projects that have an impact on a better future.
Demand too high
Green hydrogen is essential to make sectors that are difficult to electrify, such as heavy industry, transportation and aviation, more sustainable. Dutch green hydrogen production cannot meet future demand because of high production costs and limited renewable energy capacity. Importing hydrogen from regions where renewable energy is abundant and produced at lower cost - such as Oman, Spain and Brazil - offers an affordable and scalable complement to domestic production.
Funding gap
NL-Invest points to the financing gap of €2.4 billion in the first ten years of the project, despite the fact that €2 billion in returns are anticipated in the long term. To close this gap, the research firm sees a defining role for the government. Concrete interventions, such as a Contract-for-Difference (CfD), subordinated loans, and legislative and regulatory adjustments provide certainty to investors and accelerate the development of a stable green hydrogen market.
Aggregator needed
To realize imports, cooperation between public and private parties is necessary. In addition to the aforementioned interventions from the government, an aggregator has a crucial role to play. This is a party that combines supply and demand and enters into long-term contracts with both producers and buyers.
Blueprint for Europe
Port of Amsterdam reports that Invest-NL's new report serves as a model case and is also of value for other import projects. It contains an analysis on the different sectors where green hydrogen can be applied and shows how targeted interventions can make green hydrogen imports feasible not only in the Netherlands but throughout Europe. In this regard, the Port of Amsterdam is strategically positioned as a hub for Northwest Europe.
Source: Port of Amsterdam
