Dutch minister seeks short-term amortisation decision to unlock national hydrogen network

Minister's message

In a letter to parliament dated 23 September the Minister of Climate and Green Growth reiterated that hydrogen is important for a competitive, climate-neutral and resilient economy and that the national hydrogen network is needed to kick-start the hydrogen market. The minister said companies can only invest with certainty about the network and that the government is endeavouring to create more clarity on amortisation by the end of this year. A decision about amortisation is needed in the short term for further development of the hydrogen transmission network and the market.

National Energy System Plan

The National Energy System Plan, published on budget day, revised projected hydrogen volumes downwards but kept hydrogen and the transmission network central to industry decarbonisation. Hynetwork regards the plan and the minister's letter as confirmation to continue progressing the national hydrogen network to interconnect producers, users, storage and import/export flows in time.

Financing model and TNO assessment

Over the past year a financing model was developed to keep transport tariffs affordable and stable and to allow Hynetwork to make investment decisions in early 2027. The government commissioned TNO to assess the model's viability; TNO concluded that temporary deficits can, in virtually all cases, be recovered well within 30 years.

How amortisation works

The amortisation model spreads construction costs over a longer period so early users do not face prohibitively high transport tariffs. Temporary differences between costs and revenue will be covered by an amortisation account and repaid later as the market grows and more parties start using the network.