Netherlands Begins Construction of National Hydrogen Network Despite Rising Costs
Netherlands, Sunday, 28 December 2025.
King Willem-Alexander officially launched construction of the Netherlands’ first national hydrogen infrastructure, even as costs have more than doubled to €3.8 billion and the Dutch Court of Auditors warns of funding shortfalls. The ambitious 1,200-kilometer network aims to connect five major industrial clusters by 2030, positioning the Netherlands as a European energy hub. However, fewer existing gas pipelines can be repurposed than expected, requiring more new construction.
Building on Previous Momentum
The royal launch builds upon the Netherlands’ earlier strategy of offering financial incentives for regional hydrogen clusters while the national network remained under development [alert! ‘previous article URL provided but not current sources’]. This foundation work has now evolved into active construction, with significant progress achieved throughout 2025. Gasunie subsidiary Hynetwork reached a major milestone in Rotterdam during 2025, completing the last weld on the first section of the hydrogen network [1]. The company has been preparing intensively for broader construction across the country, conducting soil, nature, and ecology studies while optimizing designs and securing materials [1].
Escalating Financial Challenges
The project faces substantial cost overruns that have fundamentally altered its financial landscape. Construction costs have more than doubled from the original estimate of €1.5 billion four years ago to €3.8 billion currently [2]. The Dutch Court of Auditors estimates the government will need to provide an additional €2.5 billion beyond the already committed €750 million subsidy, representing €1.8 billion more than initially pledged [2]. The Court criticized the minister for receiving earlier information about cost escalations than was communicated to Parliament, stating that ‘the minister should have been sharper on the quality of the cost estimate, as this determines the amount of subsidy’ [2].
Technical Setbacks and Infrastructure Realities
A key factor driving cost increases stems from reduced availability of existing natural gas pipelines for conversion to hydrogen transport. Fewer existing gas lines can be repurposed than originally anticipated because industries are transitioning away from gas more slowly than expected, keeping gas pipelines in operation longer [2]. This reality requires constructing more new hydrogen pipelines than initially planned [2]. The network, spanning approximately 1,200 kilometers, must connect five major industrial clusters across the Netherlands by 2030 [2]. In Southwest Netherlands, Hynetwork plans to transport hydrogen from the Belgian border near Zelzate to Vlissingen in Zeeland and Moerdijk in Noord-Brabant, with most sections utilizing repurposed existing pipelines where possible [3].
Cross-Border Expansion and Market Development
Despite domestic challenges, international cooperation continues advancing. On December 17, 2025, Gasunie subsidiary Hynetwork, along with German companies Thyssengas H2 and Gasunie Deutschland, signed agreements to develop cross-border hydrogen infrastructure between the Netherlands and Germany [1][4]. This partnership represents the first cross-border hydrogen infrastructure connecting the two countries [4]. German network operators announced that companies can reserve hydrogen transport capacity starting in 2026 through an ‘Open Season’ process [1]. Meanwhile, Germany appears to be progressing more smoothly with its hydrogen network construction, with the German gas industry organization FNB Gas reporting that construction deadlines are being met since work began in 2025 [5].
Industry Hesitation and Future Outlook
Market adoption remains challenging due to the scarcity and high cost of green hydrogen, creating a circular problem where businesses hesitate to commit to hydrogen transitions while infrastructure development stalls without confirmed demand [2]. However, Shell demonstrates confidence by investing in a major hydrogen facility in the Netherlands, with Gasunie beginning construction of the connection between Shell’s Hydrogen 1 facility on the Tweede Maasvlakte and the Pernis refinery [2]. The government expects to make a formal decision on the revised national hydrogen network rollout plan in 2026, while project procedures for additional regional networks including Waterstofnetwerk Limburg are scheduled to begin in January 2026 [1]. The Tweede Kamer will receive updated information about the Dutch hydrogen transport network’s progress in the second quarter of 2026 [4].