Advisory group Westwood Global Energy Group released an ‘optimistic’ assessment of the outlook for hydrogen. The ambitious targets set by the Netherlands and Belgium have the collective potential to meet 62% of the EU’s import target, it found.
“A range of factors including the countries’ own ability to scale domestic production, timely development of offshore wind and infrastructure and the establishment of global partnerships will be crucial to their success,” the report warned.
The Netherlands and Belgium have an excellent opportunity to leverage existing infrastructure, but “the amount of investment and development still required is both costly and risky given the hydrogen market’s nascency”.
‘Healthy pipeline’
Westwood said both countries had solid government support, detailed road maps, a “healthy pipeline” of project and infrastructure development, financing and promising partnerships.
Westwood found only 3Mt per year of the Netherlands’ announced hydrogen pipeline to be ‘probable’, however. The country would likely miss its 4GW by 2030 target by 1GW, making imports essential for the country to meet its domestic decarbonisation goals before it could export to Europe.
Despite its seemingly conservative target relative to the Netherlands, Belgium “stands ready to take the necessary steps for the promotion of hydrogen” and has great potential for further expansion in the future, according to David Linden, head of energy transition at Westwood.
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