From Windmills to Wind Turbines: How the Netherlands is Reshaping Clean Energy in the North Sea and Beyond

As an avid cyclist, I’ve always been a fan of wind. The rush of it against your face, the satisfaction of pedaling through a strong gust head-on, and the zephyr that relaxes you after a long ride.

Wind has also been driving offshore wind energy innovation across the North Sea for years and has historic significance with traditional Dutch windmills for centuries. The natural association between clean air and green energy is becoming ever more prevalent as society has a growing interest in the health ofour planet.

These days, sustainability has become a hot topic involving everything from electric vehicles to emissions from big energy companies. Clean energy is the wave of the future, and the Netherlands is at the forefront of sustainable initiatives. 

In 2015, the Dutch government signed the Paris Agreement, while separately the Netherlands has committed to a 100 percent a circular economy and the reduction of greenhouse emissions to zero by 2050. These pledges have led many companies to accelerate sustainable initiatives. For example, sales of electric vehicles have increased in the Netherlands, with 25 percent of all newly registered cars beingeither battery electric vehicles or plug-in hybrid vehicles. The country is also home to 30 percent of the European Union’s entire electric car charging network. 

But it is going to take more than electric vehicles to turn the tide on climate change and limit global warming. Thankfully, the Dutch are working toward reducing dependence on non-renewable energy by 50percent, instead turning to clean energy sources like wind and solar power. The Netherlands has long been a leader in striving to find a balance between an economically-viable and environmentally-sustainable energy sector, while bigger, more traditional energy and transportation companies are starting to envision their pivot from fossil fuels to clean energy.

Innovating alternative energy through public-private partnerships

Some of the largest offshore wind farms like Ørsted and Gemini are paving the way to the Netherlands’goal of reducing greenhouse gas emissions by 55 percent in comparison to 1990 levels. In March 2021, Ørsted announced ambitions to develop the world’s largest renewable hydrogen plant in the Dutch-Flemish North Sea port cluster. 

Additionally, the Netherlands has seen an uptick in energy companies repurposing decommissioned infrastructure for new carbon capture projects. Porthos and Athos — initiatives to collect CO2 emissionsfrom industrial operations like the Port of Rotterdam and store them in empty gas fields in the North Sea— have been recognized by the European Union as projects of common interest.

In 2017, public transportation provider NS became the first train system in the world to run on 100 percent wind energy. Additional efforts to increase sustainable travel include the Hyperloop Development Program (HDP) in Groningen and the Hardt Hyperloop in Delft. These projects and others are exploring how to make Elon Musk’s concept for high speed, low friction vehicles encased within tubes into a reality, particularly through a high-speed connection between Paris and Amsterdam. 

A prime time for sustainability 

I cannot think of a better time than now for companies wanting to be a part of sustainable change to expand to the Netherlands. A major driver of the innovation mentioned above is thanks to companies implementing sustainable practices beyond government mandates. In 2019, 50 Dutch banks, insurance companies and institutional investors signed an agreement committing three trillion euros to green finance. Companies that are committed to the idea of reducing climate change (and consider themselves to be green companies) have a strong reason to consider the Netherlands. 

Many companies have made use of clean energy and sustainability incentives, both from the Dutch government and the European Union. One example is LyondellBasell and Convestro’s steam project at the Port of Rotterdam, which converts water-based waste into steam. The project has created a circular production process for the company’s plastics and chemical refinement, reducing CO2 output equal to the emission from 31,000 cars.

Sustainable businesses don’t only have access to local Dutch talent, but also the many Europeans willing to move to the Netherlands to work for the right company. The International Geothermal Association (IGA), SeaRenergy and Air Liquide are a few of the sustainable energy companies that have expanded to the Netherlands in recent years. 

In the interest of accessing new business, the Netherlands is an easy first step for companies to grow their prowess for greater sustainability. The Dutch open economy allows companies to use the Netherlands as a test market for their product or service. When something works in the U.S. it often will work well in the Northwest Europe. And if it works in the Netherlands, it more than likely will work for the rest of Europe.

Going the distance

Circling back to my love of cycling, the pastime has been a popular form of transportation in the Netherlands for decades. In fact, the country has around 23 million bicycles despite a population of only 17 million! Cyclists have had their own dedicated road lanes and high accommodation in train stations. It is an esteemed mode of transportation, one that receives the same respect as automobiles. 

As the Dutch rely on bicycles and many citizens depend on bus transportation to supplement commutes, many cities throughout the Netherlands have developed new and innovative strategies to facilitate transportation. For example, Zwolle introduced a new bicycle shelter in late 2020 which doubles as a rainwater storage facility and the Hague opened one of the largest bicycle parking garages in Europe. 

The Netherlands brings its standard bevy of benefits to companies. As a smaller country, hopefully you can begin see how the Dutch have built a strong ecosystem where collaboration between industry, government and knowledge institutes is commonplace. 

This year, I’m excited to be heading back to Houston to attend the Offshore Technology Conference, August 16-19. If you are an energy professional that will also be in attendance, I’d love to connect to hear more about your company’s initiatives and share how doing business in the Netherlands may help accelerate sustainability efforts. If you are considering opening a new office or other operations overseasor have questions about doing business in the Netherlands, you can send me an email at boudewijn@nfia.com.