A massive hydrogen plant in the Netherlands, heralded as a key part of Rotterdam’s green energy transition, is now at risk of never becoming operational.
The energy giant unveiled plans in 2020 to build a 200-megawatt hydrogen plan, ten times larger than any existing facility. Shell executives framed it as a bold step in the energy transition. "The energy transition requires courage, daring, and action," said then-Shell Dutch CEO Marjan van Loon
However, in 2024, the Dutch government introduced a so-called "corrective factor," effectively reducing financial incentives for using hydrogen in the fossil fuel industry. The measure was designed to push hydrogen toward the transport sector but in the process this severely undercut Shell’s economic model for Holland Hydrogen I.
“It’s essentially a penalty,” Lydia Boktor, a key figure behind the Shell project, told AD. “It slashes revenue and directly impacts our business case.”
Port of Rotterdam CEO Boudewijn Siemons commented. “This corrective factor needs to be scrapped,” he said. “Companies in other countries don’t face this barrier. If we want the industry to invest, hydrogen use in the industrial sector must be just as attractive as in transportation.”
Full story Billion-euro hydrogen plant in Rotterdam may never open as industry stalls | NL Times
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