Three-quarters of industrial sustainability plans unfeasible over power grid limitations

Three-quarters of the sustainability projects of regional large industrial companies cannot be realized before 2030, largely due to power grid limitations and waiting times for permits. They still have to pay the high CO2 tax for their power consumption, even though the slowness of their transition to more sustainable forces is out of their hands, NOS reports based on a study by the Cluster 6 association - a partnership of the involved companies, the grid operators, and the government.

It involves around 400 companies outside the large industrial areas that consume relatively large amounts of energy, such as the paper and cardboard industry, glass factories, brick factories, and the food industry. Many of these companies have presented ready-to-implement plans for sustainability projects and have invested in these plans, but can’t get the required electricity connection because there is no space on the grid. They also sometimes have to wait years to get permits for their plans.

The regional companies feel disadvantaged compared to the large industrial areas in the ports of Rotterdam, Amsterdam, Delfzijl, Terneuzen, and the chemical park in Geleen. They are further away from the energy hubs and therefore face bigger challenges in making themselves more sustainable. And while factors beyond their control are preventing them from reducing their CO2 emissions, they still have to pay the Dutch CO2 tax as well as the costs of the European Emissions Trading System (ETS).

All these factors undermine the competitive position of the manufacturing industry in the region and put pressure on employment, Barbara Huneman-Verwayen, a representative of the regional industry, told NOS. “Over 200,000 people work in these types of factories, so many families depend on this industry.”

She believes that companies that cannot become more sustainable because they cannot get an electricity connection should be exempted from the Dutch CO2 tax. “Companies should be given priority in connecting to the electricity grid. If that is not possible, they should at least not be punished with an extra tax.”