The hydrogen supply chain in the North Sea Canal region is taking shape

The NZKG has long been an important industrial region. North of Amsterdam, towards Zaandam, there are many food-processing factories, and further along the canal towards IJmuiden there are industrial companies and, of course, Tata Steel’s steel plant. For all these industries, energy supply is vital and that energy needs to become more sustainable. Hydrogen plays a key role in this. But building a new value chain takes time and money and is complex: it requires producers and importers, infrastructure to transport hydrogen, and customers willing to invest in new production processes.

The three links in that chain - production and import, transport, and consumption - are all developing in the NZKG. Each step is a puzzle in its own right, and alignment between the parts is essential. What is the current state of play?

Production and import: from Oman to Amsterdam

For the import of green hydrogen, EcoLog has taken the lead. The company was founded as a sister company of GasLog, a Greek shipping company with years of experience transporting liquefied natural gas (LNG). EcoLog now wants to use that expertise with cryogenic fuels for hydrogen, a gas that must be cooled to minus 253 degrees Celsius to be liquefied.

In Afrikahaven Oost, in the Port of Amsterdam area, EcoLog wants to build an import terminal for liquid hydrogen. The intended capacity is 200,000 tonnes per year in the first phase, with the option to scale up to 600,000 tonnes. “At the end of last year we submitted the permit application,” says Mark Hoolwerf of EcoLog. “We hope to receive the permit around the middle of this year. The ambition is to have the terminal operational by the end of 2030.”

EcoLog is looking at multiple countries as potential sources of liquid hydrogen. One of the most advanced plans is the collaboration with Oman. During the UN climate conference in Dubai, a study agreement was signed. Oman has a central hydrogen authority (Hydrom) and eight production consortia, five of which are in the port city of Duqm. “When the Sultan visited the Netherlands last year, producers, the liquefaction company, EcoLog as the transporter, Hynetwork as the grid operator, and potential buyers came together for the first time,” Hoolwerf explains. “We are now moving toward commercial contracts.”

A key advantage of liquid hydrogen compared with ammonia - another commonly used form for transporting hydrogen - is that it eliminates the need for cracking. Ammonia must be cracked back into hydrogen upon arrival, an energy-intensive process that takes place at the destination, where energy is expensive. “The energy-intensive part—the liquefaction process—takes place where renewable energy is not expensive, such as in Oman, which has plenty of spot-cheap solar and wind energy,” says Hoolwerf.

Another initiative comes from tank storage company Evos, which specializes in the storage and handling of energy products and chemicals. Evos wants to import hydrogen using LOHC technology: Liquid Organic Hydrogen Carrier. This means hydrogen molecules are bound to a liquid carrier, with the advantage that existing storage and transport equipment can be used. In the Port of Amsterdam, the hydrogen is then “unpacked” in a so-called separation plant (via a dehydrogenation process). Work is currently underway to set up a green hydrogen chain based on this technology to Amsterdam, with hydrogen produced in Canada by North Atlantic.

In addition to importing hydrogen, there are also concrete plans in the NZKG for local production of green hydrogen via electrolysis. According to Port of Amsterdam, there are two serious initiatives. One of these is the H2era project by HyCC, recently acquired by Power2X. Space has already been reserved in Afrikahaven for an electrolyser with a capacity of up to 500 megawatts. The permits have already been granted.

“The NZKG has an ideal location relative to the offshore wind farms in the North Sea,” says Rutger Oorsprong of Port of Amsterdam. The planned electrolysers in the port area can therefore easily be supplied with wind power. Amsterdam’s location is also suitable for the transit of green hydrogen. “However, local production is strongly dependent on Dutch and European policy. The framework conditions are still lagging behind the ambition.”

Transport: the pipeline as key infrastructure

The backbone of the hydrogen economy in the NZKG is the national hydrogen network being built by Gasunie subsidiary Hynetwork. In Hynetwork’s planning, this route is referred to as “tracé 2”: a connection from the Port of Amsterdam toward Tata Steel in IJmuiden, with the middle section consisting of an existing natural gas pipeline to be converted. From Spaarndam, the connection to Rotterdam will then be built (Western Netherlands). From there, the NZKG will also be linked to the other clusters and the German hinterland.

“The detailed design for the NZKG has been completed,” says Oorsprong. “We now know to the millimetre exactly where the pipeline will be.” Assuming a new financing model, Hynetwork expects to take a final investment decision (FID) for this route in the coming year, so construction can begin. According to Hynetwork’s schedule, the route will be completed in 2030. The connection to Rotterdam, according to the latest information from the Gasunie subsidiary, should be completed between the end of 2031 and the end of 2032. Hynetwork is also making good progress here. For this route, the research plan (draft NRD) was published in April of this year. This plan describes which possible routes for the hydrogen pipeline Hynetwork is studying in terms of environment, technology, surroundings, costs, and future robustness. It also describes which routes have already been eliminated and why.

Within the port area itself, Port of Amsterdam, together with grid operator Firan, is developing a regional hydrogen network, known as the H2avennet: a distribution network for relatively small customers. The ambition is to extend this network to Zaanstad, underneath the canal. Construction of the H2avennet is proceeding ahead of Hynetwork’s high-pressure network. “We would rather be a year too early than a year too late,” says Oorsprong. “The market follows the infrastructure, not the other way around.”

For EcoLog, the arrival of the Hynetwork pipeline is not a luxury, but a prerequisite. “For supplying large volumes of gaseous hydrogen, pipeline transport is the most efficient,” says Hoolwerf. “We are actively looking for multiple transport and distribution options. Hynetwork is crucial in that.” At the same time, EcoLog sees opportunities for liquid hydrogen as an end product that can be further distributed by truck, train, or inland shipping—for example to data centres or for maritime and mobility applications.

The pipeline is also vital for Tata Steel. “In the design of our new production installation, the connection points to the network have already been taken into account,” says Jeroen Klumper of the steel company. But he also adds a note about the rollout speed. “If you want to avoid all risks and take no shortcuts in procedures, then it won’t go fast enough. The Hague has been saying for years that we need to push the boundaries to speed things up. But in practice, I still see too little of that.”

Consumption: steel plants and data centres

The hydrogen economy in the NZKG has a major potential customer that could make the difference: Tata Steel. The steel plant in IJmuiden is working on a major decarbonisation programme. In September 2025, a letter of intent was signed for greening production. The new installation will start on natural gas, after which hydrogen and biomethane will be blended in step by step. The remaining CO₂ emissions can eventually be captured and stored in depleted gas fields in the North Sea.

“Switching from coal to natural gas already cuts CO₂ emissions by half,” says Klumper. “That’s already a very big step. And after that we can go in all directions, with hydrogen and biomethane, in different ratios. And with CCS indeed. That’s how we ultimately end up with a green steel plant.” The final investment decision has yet to be made, Klumper emphasizes. “But if that decision is made, then we are a customer, and we will go to the market to see how we can purchase hydrogen and biomethane at an affordable price.”

Klumper says the plan’s flexibility is a deliberate choice. “If you need demand, supply and infrastructure all at the same time, everyone ends up waiting for each other. Our plan is designed so that you don’t have to wait for all those elements at once. If the supply is there, we will take it.” Memorandums of understanding (MOUs) have been signed with, among others, EcoLog, in which both parties explore the possibilities of hydrogen imports from, among other places, Norway and Oman.

With Tata Steel as a potential major customer, the business case for other customers could also improve. Oorsprong of Port of Amsterdam also sees more potential demand in the region. “In Amsterdam and Zaanstad there are many companies that might be able to electrify, but where decarbonisation via hydrogen is also quite feasible. Think, for example, of the food industry or the production of building materials such as cement.”

In addition, there are more sectors that could benefit from the hydrogen network: data centres, aviation and shipping, and road transport. From Amsterdam, for example, sustainable kerosene can be transported to Schiphol via existing and new pipelines. And in IJmuiden and Amsterdam, experiments are already underway with hydrogen bunkering for shipping.

Bottlenecks and accelerators

Despite all the plans and projects, there are still considerable obstacles to overcome. One of the biggest hurdles is uncertainty around government policy. For example, blending obligations for hydrogen in power plants were announced, but later withdrawn. “That’s a shame,” says Hoolwerf. “Clear and stable regulation creates guaranteed demand. If that demand is there, parties can enter into long-term contracts.”

Oorsprong agrees. “European industrial policy is still too unpredictable. Parties are only willing to invest if they know hydrogen can get from A to B and that there will be industrial customers over the long term.” He also argues for public procurement as a market accelerator, especially in the early phase. “If governments encourage hydrogen in procurement, you give the market a push. That helps other parties get over the threshold.”

Klumper sees geopolitics as an additional reason to continue. “You want to get rid of dependence on fossil energy from autocratic countries. That is more relevant now than ever.” But he is also realistic: “We have a business case for our Green Steel project. That also forms the basis for the request for a tailor-made agreement with the ministry. Our customers are willing to buy green steel. It’s just that the price is higher at the moment. We’re dealing with a funding gap. That’s why demand stimulation is important.”

Still, there is optimism. “We are moving from ambition to actual execution,” says Oorsprong. Infrastructure is coming, the first offtake and supply contracts are being signed, and the sense of urgency is increasing. EcoLog’s Hoolwerf agrees: “Once we have our first offtake contracts and we start building, you’ll see more parties commit.”