Dutch Hydrogen Market Shows Growth but Project Progression Remains Muted, Reports ICIS

LONDON, July 23, 2024 /PRNewswire/ -- ICIS, a global source of commodity intelligence, has reported considerable Dutch hydrogen market growth across supply and demand between October 2023 and April 2024. Despite such growth, no projects in the Netherlands have progressed further in their development phases, including a lack of Final Investment Decisions (FIDs).

Data from the ICIS Hydrogen Foresight project database reveals that the announced low-carbon hydrogen production capacity climbed to approximately 17GW by 2040 as of April 2024, with 74% of this capacity expected to be online by 2035. On the demand side, ICIS Hydrogen Foresight shows future low-carbon hydrogen demand increasing by 13.8% over the six months to April 2024.

According to Jake Stones, Hydrogen Editor at ICIS, "The Dutch hydrogen market, recognised as a key location for the emergence of widespread hydrogen trade due to large-scale infrastructure potential, saw little in the way of progression of projects, with no currently announced projects advancing to FID. Despite the apparent growth, this lack of progression indicates underlying market challenges that must be addressed to fully capitalise on potential."

ICIS Hydrogen Foresight, which tracks the progression of hydrogen projects based on primary sources, noted updates across 38 supply-side projects and 21 demand-side projects, reflecting changes in nearly half of announced projects. Supply capacity grew by 777MW (4.8%), and demand increased from 22.7TWh to 25.7TWh (a 3TWh increase), with 90% of the 25.7TWh expected to be online by 2032.

ICIS notes that economic drivers such as industrial support mechanisms and increasing clarity on targets for decarbonising energy use encourage market participants' investment proposals. However, financial challenges and regulatory uncertainties continue to dictate the pace of market development.

"Although there has been a mix of feedback from the market behind a lack in FID and project progression, a balance to this is that projects simply take time to reach such final decisions. While there are wider influences in the mix, there is also a strong level of activity and confidence in the market, as can be seen by new announcements on both supply and demand," says Daniyal Sheikh, Hydrogen Market Analyst at ICIS.

"Finally, in the case of the Netherlands, supply-side projects far outweigh currently announced demand, indicating that would-be producers could be hesitant amid high competition for securing offtake. Meanwhile, on the demand side, willingness to pay shows limited overlap with expected production costs, again a potential cause of hesitation," concludes Sheikh.

About ICIS
ICIS – Independent Commodity Intelligence Services – helps businesses through seamlessly delivering data and analytics, across the chemical, fertilizer and energy markets. A trusted source and benchmark for price information and insight across key commodities markets worldwide. Our independent, transparent market intelligence informs thousands of quality decisions every day, taking the pressure out of negotiations and giving customers space for more innovative thinking, through published datasets including price assessments, price forecasts, supply and demand fundamentals and more. Over 150 years of shaping the world by connecting markets to optimise the world's valuable resources. With a global team of more than 600 experts, ICIS has employees based in London, New York, Houston, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Dubai, Sao Paulo, Seoul, Tokyo and Perth.

ICIS is part of RELX, a FTSE15 company with a market cap of £65.9bn and an employee base of over 35,000 experts across 40 countries.

About RELX
RELX is a global provider of information and analytics for professional and business customers across industries. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs approximately 30,000 people of whom almost half are in North America. RELX PLC is a London listed holding company which owns 52.9% of RELX Group. RELX NV is an Amsterdam listed holding company which owns 47.1% of RELX Group. The shares are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX and RENX. Total market capitalisation is approximately £65.5bn | €78bn | $85bn.

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