Business development results

A new Climate Agreement was launched in early 2018. Infrastructure is seen as one of the keys to successfully fulfilling the climate goals in 2030 and 2050. It plays a linking and facilitating role in the transition, and was therefore an important theme at all the tables involved in the Climate Agreement. Gasunie likes to show how the use of existing and new energy infrastructure contributes to that success and how we are shaping that in concrete terms with various projects and partners.

Gasunie wants to contribute to the energy transition in four important areas (hydrogen, green gas, heating and CCUS). These projects are described in clusters below, including the phasing and an indication of the investment.

Green gas cluster

At present, the Gasunie network primarily transports natural gas. In the future, other energy carriers, like green gas and hydrogen, will increasingly be flowing through this network. Approximately 60% of our energy mix will consist of gas molecules by 2050, compared to about 80% use of molecules now. The potential of green gas is substantial. The objective is to produce and supply 2 bcm by 2030, as laid down in the Climate Agreement.

SKW Asset Alkmaar BV
In 2017, SCW Systems and Gasunie founded the company SKW Asset Alkmaar BV for the development and construction of a demo gasification plant. SKW makes the gasification plant available to a third party. In the plant, supercritical water gasification is used to sustainably produce gas and reusable raw materials from wet biomass (residual and waste flows). The installation was further developed in 2018 and a number of successful tests took place. The connection to the high-pressure transport network was realised at the end of 2018. The first feed-in into the gas transport network is expected to take place during the first half of 2019. After that, the installation will gradually be expanded. The investment involved amounts to almost € 20 million.
In response to the government’s gas decision at the beginning of 2018, Groen Gas Nederland, TKI Nieuw Gas & Executive Consortium Partners (which includes Gasunie and SCW Systems) made the Ministry of Economic Affairs and Climate an offer in March 2018 for accelerating the production of green gas. The offer involves the production of 1 bcm of green gas by 2023/2025, half of which (550 million Nm3 ≈ 20 petajoules) must be generated using supercritical water gasification technology. SCW Systems and Gasunie New Energy have since conducted a feasibility study. Based on that, surveys for the development of two new locations started in 2018. The total investment amounts to more than € 500 million.

Green Goods Texel
Together with a number of local partners on Texel, Gasunie wants to build a demonstration installation to demonstrate the feasibility of a biobased chain of circular agriculture, which involves harvesting high-quality proteins from grass grown in crop rotation and other biomass flows available in the region. The residual products are fermented into green gas. In 2018, permits were applied for and granted for the fermenter on Texel. The investment amounts to approximately € 7 million.

Hydrogen cluster

Gasunie wants to speed up the market development of hydrogen. As an independent network operator and connecting party, we can connect hydrogen from various providers and transport it to the large industrial clusters in the Netherlands. By making maximum use of our existing infrastructure, this network can have capacity of approximately 10-15 GW by 2030. Gasunie is developing a number of projects with partners in the Eemshaven, North Sea Canal, Rotterdam, Zeeland and Limburg industrial clusters for this.

HyStock
HyStock is the name given to the collaboration with EnergyStock and other partners in relation to the conversion, storage and transport of green hydrogen. The construction of the hydrogen installation was completed at the end of 2018. This means the conversion capacity for converting sustainably generated electricity into green hydrogen is available to the market as a clean fuel for mobility and as a raw material and energy carrier for industry. A solar park generates green energy, some of which is converted into hydrogen. The solar park is expected to be ready at the beginning of 2019.
HyStock is a concrete step in developing hydrogen as a central link in a sustainable energy system. Together with partners, a European subsidy was received for this project (known as the TSO 2020 call). With the completion of HyStock, Gasunie satisfied its portion of the TSO 2020 obligations.

Magnum power station
Vattenfall, Equinor and Gasunie have formed a consortium to look into the large-scale production and purchase of CO2-neutral hydrogen in the Eemsdelta region. This is aimed at creating a hydrogen value chain that could also serve as the basis for a sustainable hydrogen economy. Within this collaboration, Equinor is focused on hydrogen production whereby Norwegian natural gas is converted into hydrogen and CO2. The CO2 is stored underground off the Norwegian coast. As part of this project, Gasunie is researching the possibilities of transporting hydrogen to the Magnum gas-fired power station and (industrial) buyers and temporarily storing the hydrogen in caverns. Vattenfall uses the hydrogen as a CO2-free fuel for electricity production at the Magnum power station. The H2M project could potentially reduce Dutch CO2 emissions by 2 million tonnes per year, starting in 2024. The investment amounts to more than € 500 million.

Medium-sized electrolyser
Together with Nouryon (formerly AkzoNobel Specialty Chemicals), Gasunie is investigating the possibilities of large-scale conversion of sustainable electricity into green hydrogen at the Delfzijl Chemical Park. The hydrogen will be used to increase the sustainability of the chemical industry, energy supply and vehicles. Together, the parties want to develop an installation that converts sustainably produced electricity into 3 kilotonnes of green hydrogen per year (30 million m3) using a 20 megawatt water electrolysis unit. A decision on the construction of the installation is expected in 2019. The investment amounts to € 15 million.

North Sea Wind Power Hub
In 2018, the partners (Gasunie, TenneT (the Netherlands), Energinet.dk (Denmark), TenneT (Germany) and the Port of Rotterdam Authority) conducted studies and research into the development of a large-scale, sustainable European energy system on the North Sea in which wind and hydrogen play a central role. The North Sea Wind Power Hub should make a crucial contribution during the 2030-2050 period towards the achievement of the objectives of the Paris climate agreement (COP21). The quantities of offshore wind energy required for the energy transition are so large that in addition to electricity connections, solutions for hydrogen transport and storage must also be used.
The future hub can supply hydrogen for the hydrogen backbone envisioned by Gasunie, which will be able to supply the industry clusters in the Netherlands with sustainable energy. Gasunie therefore plays a major role in increasing the sustainability of the energy supply for industrial businesses and other sectors.

Heat cluster

The new coalition agreement devotes a great deal of attention to reducing the demand for heat and making it more sustainable. Gasunie regards the heat grid as an essential component in the sustainable energy mix of 2050. In the built environment, heating requirements will largely be satisfied by heat pumps, solar boilers and heat grids that use residual heat.

Zuid-Holland heat roundabout
The heat roundabout is a large-scale heat transport system with major importance to society because of its suitability for lowering CO2 emissions in the relatively short term and reducing Groningen production. Gasunie has voiced the ambition of investing in the heat roundabout and taking on the role of independent network operator.
The members of the Zuid-Holland Heat Alliance (Port of Rotterdam Authority, Gasunie, the Province of Zuid-Holland, Eneco and Warmtebedrijf Rotterdam) have been working together since 2017 to develop the use of collective heating as an alternative for natural gas in the built environment and for greenhouse farming. The goal of the Heat Alliance is to establish a heat transport system in Zuid-Holland to which suppliers can gain non-discriminatory access for the supply of heating. The investment for this amounts to more than € 500 million. In a joint venture with the Port of Rotterdam Authority, Gasunie is currently working on developing a ‘Pipeline through the Centre’ (Leiding door het Midden) for the supply of heating from the Rotterdam region to the region of The Hague.

CCUS cluster

In the Climate Agreement, industry and the government announced a number of measures to reduce CO2 emissions. One of these is CO2 storage and reuse. The Dutch government also announced, in the ‘Rutte III’ government’s coalition agreement, that it wants to store CO2 in order to achieve climate goals. The storage and reuse of CO2 is also referred to as CCUS (Carbon Capture, Utilisation and Storage). With its knowledge and expertise of gas transport through pipelines, and of compression and storage, Gasunie can make a valuable contribution to the development of CCUS in the Netherlands.

Porthos (CCUS Rotterdam)
Working with partners EBN and the Port of Rotterdam Authority, Gasunie wants to facilitate the storage of CO2, originating from industry in the Rotterdam port, in empty gas fields deep in the North Sea bed from 2023. The project is focused on creating a storage and transport system to which various industries and businesses can link up. Porthos carried out preparatory work in the areas of engineering and concept selection in 2018. The project investment is expected to amount to about € 400-500 million in the coming years.

Athos (North Sea Canal CCUS)
Together with EBN, the Port of Amsterdam and Tata Steel, Gasunie investigated the feasibility of a CCUS system in the Amsterdam/North Sea Canal region. The feasibility study will be completed at the beginning of 2019. The project is expected to require investment of several hundred million euros.

LNG

Gasunie wants to strengthen its position in north-western Europe and offer efficient services in relation to gas infrastructure and LNG that contribute to the functioning of the increasingly integrated European gas market.

German LNG terminal
The ‘German LNG Terminal GmbH’ (GLNG) joint venture wants to develop an LNG terminal in North Germany. The LNG terminal is planned to be sited in Brunsbüttel, on the Elbe north of Hamburg. An ‘open season’ was held in 2018 in which a substantial number of potential customers expressed interest. An agreement was signed with energy company RWE and one other party on contracting a significant percentage of the terminal capacity. 
The terminal can contribute strategically to the diversification of the German energy supply. Germany is working to phase out the use of nuclear energy and coal (especially brown) for its electricity production. 
Natural gas is considered a good alternative. The terminal will give Germany access to the world market for natural gas in the form of LNG
Assuming sufficient interest from the market and the availability of the necessary permits, the final investment decision is expected at the end of 2019. Construction is expected to take place in the 2020-2022 period, after which the terminal will become operational at the end of 2022.

Data

Gasunie is working with partners to develop data services to promote the energy transition. Gasunie launched Vergroenjegas.nl this year: an independent trading platform for green gas certificates. The trade name NetAnders was also launched, aimed at making the expected and near-real-time supply and demand for sustainable energy on the Dutch energy system visible.
In 2018, an updated version of Energieopwek.nl, a website with information on twelve sustainable energy sources, was launched in conjunction with TenneT, the Social Economic Council (SER), NBNL and Hanze University of Applied Sciences.

Size and phasing of projects

The size and phasing of the business development projects described in this annual report is shown in the table below. The indicative size of the investment applies to the project as a whole and is divided into five categories in the table; € 1-10 million, € 10-50 million, € 50-250 million, € 250-500 million and more than € 500 million. Gasunie’s investment is usually a part of this, since, as a rule, these projects are carried out by a collaboration of partners. The phasing relates to the year in which the project will be finished and the operational period starts.

Size and phasing 2019  2020/2021  2022/2023  2024/2026  na 2026 
           
Pillar II: Connecting Europe               
- German LNG terminal        € 250-500 mln       
           
Pillar III: Energy in transition               
- SCW       € 250-500 mln       
 - Green Goods Texel  € 1-10 mln             
- HyStock  € 1-10 mln             
 - H2M           > € 500 mln    
 - 20 MW electrolyser     € 10-50 mln          
 - North Sea Wind Power Hub              > € 500 mln 
- Zuid-Holland Heat Roundabout       € 50-250 mln    > € 500 mln 
 - Porthos (CCUS Rotterdam)        € 250-500 mln       
 - Athos (CCUS North Sea canal)           € 250-500 mln    

Contribution to the Sustainable Development Goals

We contribute to the Sustainable Development Goals based on our material themes of Energy Transition and Business Development.

We contribute to SDG: We contribute to sub-goal
  • 9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
Our activities Results
  • Initiate the development of sustainably generated gas networks and heat grids
  • Participation in development projects
  • Develop infrastructure in accordance with customer requests and requirements and the public good (construction of nitrogen plant)
  • Participation in various projects: HyStock, heat grids, Gasunie Hydrogen Services, LNG terminal in Germany, development of gas roundabout
  • Cooperation with TenneT
  • Dutch infrastructure is among the best in the world