PwC study for Gasunie: CCS, low‑carbon hydrogen and hybrids are most cost‑effective for Dutch industry decarbonisation
- Dutch industry must cut about 44 Mt CO2 to become climate‑neutral.
- Carbon capture and storage (CCS) could cover ~21 Mt CO2/year, ~18 Mt of which from low‑carbon (blue) hydrogen.
- Decarbonising steel production represents about 9 Mt CO2/year.
- Hybrid boilers switching between steam and hydrogen/biomethane could save ~6 Mt CO2/year.
Industry context
The Dutch industrial sector contributes about 12% of GDP and employs hundreds of thousands, yet faces high energy costs, grid congestion, a still‑developing hydrogen market and strong international competition while targeting climate neutrality by 2050.
PwC's approach
Commissioned by Gasunie, PwC mapped the main industrial CO2 emissions and evaluated the most cost‑effective decarbonisation route per process, deliberately ignoring government support to compare underlying technology costs. The study identifies a required reduction of roughly 44 Mt CO2.
Most cost‑effective routes
CCS is the single largest route, covering about 21 Mt CO2/year, including ~18 Mt from low‑carbon (blue) hydrogen. Steel decarbonisation accounts for ~9 Mt CO2/year. Hybrid boilers—running on steam in cheaper hours and hydrogen or biomethane otherwise—could remove ~6 Mt CO2/year. Biomethane (~4 Mt) and direct electrification (e.g. heat pumps) contribute mainly for smaller emitters; for concentrated emissions CCS is the only feasible short‑term option.
Implications and enablers
Decarbonisation requires a broad energy mix: electricity, sustainable gases and CCS, plus timely CO2 and hydrogen infrastructure. PwC notes the transition is often costlier than current operations, prompting investment delays; suggested enablers include limiting investment risks for H2 and CO2 networks, targeted support for blue hydrogen (e.g. SDE++), and scaling renewable electricity and biomethane supply.
Source: Gasunie