According to a study conducted by DNV on behalf of the Clean Air Task Force, replacing existing grey hydrogen production with low-carbon or green hydrogen alone could meet 60% of the Dutch industrial emissions target, however, acceleration of policy support IS REQUIRED.
Current Dutch policy requires its domestic industries to reduce greenhouse gas emissions by 59% by 2030, ahead of reaching climate neutrality by 2050. In pursuit of the goals, the Dutch Government established a Sustainable Energy Transition subsidy scheme (SDE++), working to compensate the additional costs of adopting low-carbon technologies that are already used or close to deployment, such as carbon capture and storage (CCS).
A redesign of the SDE++ scheme could support investment in emerging technologies and change the Dutch hydrogen landscape by improving the business case for low-carbon hydrogen, according to DNV.
DNV has said that blue or green hydrogen is not yet sufficiently incentivised by policy mechanisms to bring confidence to investors and industry, however it says its analysis found that the more than 6GW of grey or fossil hydrogen currently produced in the country could support market opportunities for green and low-carbon hydrogen.
From its study, DNV estimates that if all announced blue hydrogen projects in the country were to be executed, it could lead to a reduction of up to 5.2 megatonnes of carbon dioxide emissions by 2030. However, if existing grey hydrogen production was replaced with blue, through the application of CCS, industrial emissions could be reduced by more than 8.5 megatonnes, nearly 60% of the industrial emissions target.
DNV has also noted that if existing grey hydrogen was replaced with green, an emission reduction of over 11 megatonnes, nearly 78% of the industrial emissions target could get achieved.
Prajeev Rasiah, Executive Vice-President for Energy Systems, Northern Europe at DNV, said, “The Netherlands is strategically positioned to take a leading role in the energy transition, with good conditions for offshore wind close to the country’s industrial clusters, a network of some of the world’s largest and busiest seaports, and extensive natural gas infrastructures that can be utilised for both domestic and cross-borders hydrogen and carbon dioxide transport.
“Part of the success of the energy transition will be determined by public engagement and the availability and scope of effective policy instruments. Our analysis finds significant achievements in cost-effective decarbonisation in the Dutch industry thanks to targeted support. While there still is a margin for improvement where emerging technologies are concerned, the progress we already see should inspire policymakers in the EU and the world to support and accelerate the elevation of industrial decarbonisation technologies.”
Magnolia Tovar, Global Director of Zero Carbon Fuels at Clean Air Task Force, added, “These results give us important insights on how other European countries can look to kickstart their industrial decarbonization efforts. We hope that this study will help raise the profile on the kinds of policy mechanisms that governments can implement in order to move the needle on this long-overlooked piece of the climate challenge.”
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