Making industry more sustainable

Study of implications of energy transition for electricity grid

It is certain that the energy transition will lead to increased demand for renewable electricity by the industry in Rotterdam. We joined TenneT and the Port of Rotterdam Authority in carrying out a study of the precise implications of the energy transition for the electricity grid in the port area. An earlier study by the Wuppertal Institute found that demand will grow by a factor of two to three. This electricity is mainly needed for the electrification of industrial processes, for making green hydrogen and for the increased electrification of transport.

To this end, the electricity grid in the port needs to be reinforced in the coming decades. The physical space available for doing so is limited both above and below ground. Furthermore, the current approach is determined by existing legislation and regulations, which leads to higher social costs and longer lead times. It is better if the steps that we take to reinforce the electricity grid are rather guided by a long-term vision.

The 'Study of the implications of the energy transition for the electricity grid' contains three recommendations for ensuring that the necessary reinforcement of the grid is performed in a timely manner and at the lowest possible cost:

1. Legislation and regulations must be amended for infrastructure to be built on the basis of a long-term vision (2050), instead of always acting in response to individual queries from companies. This approach ensures lower total costs (no laying of parallel cables), shorter lead times and minimisation of physical bottlenecks. After all, space in the port area is limited.
2. The Ministry of Economic Affairs and Climate Policy must exercise control to designate locations directly on the coast for the large-scale conversion of electricity (offshore wind) into hydrogen. This hydrogen is an important raw material to make the industry more sustainable, since transporting hydrogen requires far less space and lower investment than electricity transmission.
3. Physical space must now be reserved for the future electricity infrastructure. This measure allows us to roll out a robust and future-proof electricity grid in phases.

Working Group 'Rotterdam Port Industry Complex Infrastructure

The Rotterdam Port Industry Complex brings together many different systems that are all undergoing a transition. They include energy systems and raw materials for industry, as well as transport by land and water, for example.

Based on our current understanding, we anticipate that approximately € 1.5 billion will need to be invested in elec- tricity transmission as well as the transport of CO₂, hydrogen, steam and residual heat until 2030. It is not clear at this stage which technology choices the industry will make, or when they will make those choices. As a result, it is difficult to press ahead with the development of new infrastructures at this time. At the same time, complex infrastructures take quite a long time to build. This situation can result in a mismatch between supply and demand. Grid operators are therefore teaming up with industrial parties and other relevant partners looking for new forms of cooperation.

As a first step, the Working Group Rotterdam Port Industry Cluster Infrastructure has been set up with the aim of facilitating knowledge-sharing and development. This working group, which originated from the regional sector body Industry Rotterdam Moerdijk, is chaired by the Port of Rotterdam Authority and Stedin. Other participants are Deltalinqs, TenneT, Gasunie, the province of South Holland, the municipality of Rotterdam and the Institute for Sustainable Process Technology (ISPT).

An example of knowledge development and sharing is the Study 'A port filled with new energy', in which parties examine the effects of the transition on the electricity grid.

The Working Group's projects:

• Model for Adaptive Investment Strategies – Phase 1: Wind- master; Phase 2: Gridmaster. The aim is to develop a model that provides better insight into potential transition pathways, necessary infrastructure and investment strategies.
• Energy Mix Study. In this study we identify the potential changes affecting the energy and raw material systems of roughly 30 companies in the Rotterdam Port Industry Cluster. The study will be completed in Q1 2020.

Other projects:

• HydroHub Innovation Programme. The industry, port companies, grid managers and other partners investigate the potential of various hydrogen supply chains. 
• The Climate Agreement on Industry Infrastructure Task Force advises the Minister on the conditions for building the necessary infrastructure with a view to the industry's transition. In 2019 our CEO Marc van der Linden was appointed to the advisory council of this Taskforce by the Minister of Economic Affairs and Climate Policy.