
Companies are holding off investments in hydrogen carrier import terminals due to uncertainty over future demand, the Port of Rotterdam authority said, following a recent market consultation.
At least nine companies are exploring projects to import hydrogen carriers such as ammonia, methanol, liquid hydrogen and liquid organic hydrogen carriers (LOHC) into Rotterdam. Some proposals include cracking facilities to convert these carriers back into hydrogen.
But companies are reluctant to proceed with final investments, which can typically cost several hundred million euros for a single terminal, according to a market consultation conducted by the Port of Rotterdam Authority.
Developers are seeking greater certainty that sufficient demand will emerge to justify the capital outlay. The consultation found that uncertainty over how policies designed to stimulate demand for green hydrogen carriers will be implemented is a key concern for investors.
Companies also flagged other risks, including grid congestion, delays in pipeline infrastructure and limited connections to inland markets such as Germany through projects like the Delta Rhine Corridor.
Permitting uncertainty, including nitrogen deposition rules and inconsistent approval procedures, was also cited as a barrier.
Most companies expect planned terminals to become operational only after 2030, the port authority added.
Source: ENGINE, https://www.engine.online/news