Hydrogen Central

Belgium Passes New Hydrogen Transmission Law – ICIS

belgium hydrogen law

Belgium passes new hydrogen transmission law – ICIS.

Belgium passed a new law on hydrogen transmission, which introduces a regulatory framework for the transportation of hydrogen through pipelines into the Belgian hydrogen market.

One of the main stipulations is the establishment of the conditions for the designation of a Hydrogen Network Operator (HNO) for Belgium.

The HNO will be designated over a period of 6-7 months from the law entering into force.

The HNO will operate for a period of 20 years, which may be prolonged at the request of the HNO, five years before its termination date.

Other existing networks may obtain the status of independent operators. Operators can also maintain ownership of their networks and request the HNO to manage the network on their behalf.

The methodology for transferring ownership to the HNO from network operators is yet to be developed.

The Belgian Federal Commission for Electricity and Gas Regulation (CREG), the General Directorate of Energy, the Council of Ministers, and the Belgian Minister of Energy will be part of the designation process.

The HNO’s responsibilities include:

  • Facilitating free and non-discriminatory access to the hydrogen transport network;
  • The publication of a Network Development Plan (NDP) every two years, with a 10-year outlook on the market. The NDP is monitored by CREG and approved by the energy ministry. The NDP will include a 4-year binding investment program;
  • The HNO will guarantee hydrogen quality standards across the network.

CREG will act as the regulator of the HNO, operating in the same way as a gas or electricity regulator. Its responsibilities will include establishing a revenue framework and approving tariffs proposed by HNO.

The current law affects all hydrogen transport via pipelines in Belgium and to neighboring countries. The law does not apply to supply networks, according to the text published in the Belgian Monitor.

This comes after the Belgian Council of Ministers previously approved a subsidy of €250m for the hydrogen transport network, including for an interconnection with Germany and system connections between different Belgian clusters, including Ghent, Antwerp, Mons, Charleroi, and Liege.

The funding will be awarded to the HNO after its appointment in line with the newly published law.

ICIS Analytics forecasts estimate that hydrogen demand in Belgium will reach 41.5TWh/year by 2050, with a demand shortfall of 34TWh/year by the same time. The shortfall will need to be covered through imports.

READ the latest news shaping the hydrogen market at Hydrogen Central

Belgium passes new hydrogen transmission law, London, July 25, 2023

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