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fluxys-begins-hydrogen-pipeline-build-in-belgium-despite-funding-and-market-uncertainty
© Fluxys
fluxys-begins-hydrogen-pipeline-build-in-belgium-despite-funding-and-market-uncertainty
© Fluxys

Fluxys begins hydrogen pipeline build in Belgium despite funding and market uncertainty

Fluxys has begun construction of the first phase of Belgium’s hydrogen pipeline network but the development will align with the “delayed market development.”

Construction has started despite the Belgian Government withdrawing a €250m ($270m) funding package that was earmarked for the pipeline network last month.

Nevertheless, an online statement released by Fluxys claimed the government will back the initial project through the European Resilience and Recovery Fund.

The initial pipeline projects will be built in the port areas of Antwerp and Ghent, as well as the route connecting them between Kallo and Zelzate. The pipelines will be open-access, meaning any company can use them to supply or receive hydrogen.

“The decision to build these first hydrogen pipelines was made after extensive consultations with the relevant authorities, the regulator, industrial market players, and is aligned with the delayed market development,” Fluxys stated.

“The federal government provides support for these important initial investments in open-access hydrogen infrastructure through the European Resilience and Recovery Fund.”

After being appointed Hydrogen Network Operator (HNO) for the development and management of the Belgian network last year, Fluxys will head up the role for a further 20 years.

The network will also form part of the wider European Hydrogen Backbone (EHB), which will cover a range of EU member states.

Developing large-scale hydrogen pipeline networks presents significant challenges, including high upfront costs – Fluxys alone plans to invest €2bn ($2.2bn) by 2033 in hydrogen infrastructure – alongside regulatory uncertainty and limited market readiness.

Last year, the planned hydrogen pipeline linking Denmark and Germany was delayed from 2028 to 2031 due to “significantly different degrees of maturity” between the two countries’ hydrogen markets.

However, the plans were later fast-tracked after the Danish Government implemented risk mitigation measures with lowered capacity booking requirements.

Speaking to H2 View last year, Dieter Keller-Giessbach, Vice-President at Charles River Associates (CRA), said that anchor customers will be crucial to the development of hydrogen pipeline networks – highlighting Thyssenkrupp as potentially a key enabler of Germany’s hydrogen core infrastructure.

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