Gasunie Outlines Major Hurdles in Offshore Hydrogen Development
Amsterdam, Wednesday, 16 July 2025.
Gasunie reports that high costs and low electricity demand are hindering offshore hydrogen projects in the Netherlands, urging clear government policies to stabilize the sector’s future.
Economic and Technological Hurdles
Gasunie, based in the Netherlands, highlights major challenges in the offshore hydrogen sector. The high costs for offshore wind farm developers and lagging electricity demand have slowed developments this summer, as reported in the Wind Energy Infrastructure Plan for the North Sea. This has left hydrogen producers without a stable investment perspective. Additionally, the Dutch government’s call to reduce investment ambitions further exacerbates uncertainty for industry stakeholders [1][2].
Policy Paralysis and its Implications
The sector’s progress is hampered significantly by unclear governmental policies. As the government reconsiders its approaches amidst ongoing elections, industry leaders, including Gasunie, emphasize the need for robust and clear policies to facilitate CO2 reduction investments. The transition towards hydrogen energy is pivotal in achieving climate goals, yet the absence of concrete policies is a bottleneck [1][2]. Experts highlight that the establishment of a coherent energy system that integrates both electrons and molecules is essential for realizing the full potential of hydrogen [1][2][3].
Industry’s Strategic Collaboration
Gasunie has been proactive in maintaining collaborations with various partners such as TenneT to explore synergistic opportunities between hydrogen and electricity networks. These partnerships extend beyond national borders, involving discussions with grid operators from other North Sea countries. The company underscores the importance of having infrastructure in place before the demand for transport arises, cautioning that waiting until everything is certain could lead to missed opportunities [1][2].
Innovations in Hydrogen Technology
Meanwhile, the development and implementation of advanced technologies, like those from Battolyser Systems, show promise in advancing the hydrogen sector. Battolyser Systems, supported by investments from PMT, focuses on technologies that utilize renewable energy sources to produce hydrogen through electrolysis. Such innovations are critical, as current technologies are expensive and not yet viable for large-scale production [3].