Belgian gas transmission system operator Fluxys has recently announced a significant increase in its investment plans, committing €2 billion ($2.19 billion) to develop hydrogen pipelines by 2033.
This figure nearly triples the initial €0.7 billion allocated in their previous nine-year investment strategy. While this ambitious increase reflects a strong commitment to hydrogen infrastructure, it also raises questions about the feasibility and alignment with broader industry trends.
Fluxys’ plan is part of a broader €5.9 billion investment strategy, which CEO Pascal De Buck has noted will heavily focus on sustainable initiatives, with hydrogen and CO2 infrastructure representing over 80% of the total budget. This substantial shift towards sustainable energy is commendable, but it must be scrutinized within the context of industry benchmarks and the current state of hydrogen infrastructure across Europe.
When compared to other European operators, Fluxys’ €2 billion investment in hydrogen pipelines is notable, yet it still faces stiff competition from other infrastructure projects across the continent. For instance, Germany’s recent plans include a €9 billion investment in hydrogen, highlighting the scale required to establish a robust hydrogen economy.
Moreover, the current European Hydrogen Backbone (EHB) initiative, which aims to establish a pan-European hydrogen pipeline network, estimates a total investment need of around €43-81 billion by 2040. Fluxys’ contribution, though significant, represents just a fraction of the required capital. This raises critical questions about the pace and scale at which Belgium, through Fluxys, is contributing to the continental hydrogen agenda.
A significant portion of Fluxys’ broader €5.9 billion plan is dedicated to CO2 infrastructure, reflecting a dual focus on hydrogen and carbon capture and storage (CCS). While this balanced approach aligns with the European Union’s climate goals, it also introduces a complexity in resource allocation. The challenge for Fluxys will be to manage these parallel projects effectively, ensuring that neither is compromised in the pursuit of the other.
