Market consultation: mainly uncertainty about demand is holding back investments in terminals for hydrogen carriers such as ammonia

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The Port of Rotterdam Authority wants to accelerate the import of hydrogen carriers. But although several parties are making plans for import terminals, investment decisions are not forthcoming. The Port Authority has recently conducted a market consultation to gain insight into the concrete bottlenecks and possible solutions.

This shows that various financial and non-financial risks are the reason why companies are hesitant to invest at this moment in import terminals and conversion plants for hydrogen carriers such as ammonia. One of the main risks is the demand uncertainty for renewable energy carriers, which is connected to unclarity about the implementation of policies to stimulate demand. Next to that, power grid congestion and lagging pipeline infrastructure are important issues as well.

The market consultation shows that at least nine companies are making plans for terminals that can handle ammonia, methanol, liquid hydrogen, or LOHC, with or without conversion on site into hydrogen (ammonia cracking or LOHC dehydrogenation plants). The cost of such a terminal quickly amounts to several hundred million euros, which is why companies want a certain degree of certainty that they can recover their investment.

In addition to uncertainty about demand, companies see uncertainty about permits (especially regarding nitrogen deposits and the unpredictability of procedure timelines), power grid congestion, the lack of infrastructure to the hinterland (such as the Delta Rhine Corridor to Germany), and uncertainty about policies (such as a stable long term climate policy stimulating demand). Most companies expect that their potential terminal will not be operational until after 2030.

The risks that are mentioned by the participants have been prioritized and are being addressed by the Port of Rotterdam Authority together with its public and private partners.