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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SOURCE ICIS