Hydrogen Infrastructure Project Risks in The Netherlands

Pieter W M Vasbinder,Wim Westerman,Antoine W G De Vries

doi:10.3390/en14196009

Pieter W M Vasbinder, Wim Westerman + Show 1 more

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https://doi.org/10.3390/en14196009

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Abstract

This study aims to assess the potential risks of setting up a hydrogen infrastructure in the Netherlands. An integrated risk assessment framework, capable of analyzing projects, identifying risks and comparing projects, is used to identify and analyze the main risks in the upcoming Dutch hydrogen infrastructure project. A time multiplier is added to the framework to develop parameters. The impact of the different risk categories provided by the integrated framework is calculated using the discounted cash flow (DCF) model. Despite resource risks having the highest impact, scope risks are shown to be the most prominent in the hydrogen infrastructure project. To present the DCF model results, a risk assessment matrix is constructed. Compared to the conventional Risk Assessment Matrix (RAM) used to present project risks, this matrix presents additional information in terms of the internal rate of return and risk specifics.

Highlights

The European Commission aims to reduce net emissions of greenhouse gases in the European Union to zero by 2050
To demonstrate the way the Risk Assessment Matrix (RAM) developed for the hydrogen infrastructure works, the entire hydrogen infrastructure as calculated with learning effects will be used
These risks will provide an internal rate of return, with which the appropriate mitigation treatment can be determined and the appropriate RAM can be developed

Summary

Introduction

The European Commission aims to reduce net emissions of greenhouse gases in the European Union to zero by 2050. The Netherlands, among other countries, wants to use hydrogen as an energy source/carrier, in order to become carbon neutral. Dutch industries already use hydrogen gas on a large scale as a resource, but hydrogen can be employed to store and transport renewable energy to users, both industrial and private. In this way, hydrogen gas can replace oil, natural gas, coal and other polluting fossil energy sources. The focus in the Netherlands is on the production and storage of electricity through hydrogen gas. To make this happen, the Dutch Ministry of Economic

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