High costs, disappointing demand

Court of Auditors warns: billions more needed for national hydrogen network

Voor de realisatie van het landelijke waterstofnetwerk zijn volgens de Rekenkamer miljarden euro’s extra nodig. Foto: Shutterstock

Billions of euros more are needed to realise the national hydrogen network, which from 2030 will connect the main industrial regions in the Netherlands. The Court of Audit states that the expected start-up losses are now more than three times the available subsidy of 750 million euros. The ANP writes.

The construction of the hydrogen network in Rotterdam started in October 2023, commissioned by then climate minister Rob Jetten. The project was supposed to contribute to a sustainable energy supply and serve as an alternative to fossil fuels. According to current plans, the network of about 1,200 kilometres should be ready by 2030.

The Court of Auditors reports that the estimated investment cost is now €3.8 billion, down from €1.5 billion in 2023. In a report, the audit body speaks of a “high risk” for the treasury.

Adverse demand

According to the body, the larger losses are partly due to “substantially increased” costs and disappointing demand for hydrogen. The supply of renewable hydrogen also “falls well short” of expectations.

The lagging demand also makes it uncertain whether the entire network will actually be built, it said. One section of the hydrogen network is now being built. For the remaining 14 sections “the feasibility will have to be further determined”. The Court stresses that the government must make timely adjustments to operate more efficiently, “precisely because a lot of public money is involved”.

The Court further concludes that the Minister of Climate and Green Growth informed the House of Representatives “incompletely” about the expected costs of the hydrogen network. “We believe that the minister should have been sharper on the quality of the cost estimate, as it determines the amount of the subsidy,” the Court writes.

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This article was automatically translated from the Dutch language original to English (British).

Author: Nina Koelewijn

Source: MobilityEnergy.com

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