Entrepreneurship collaborations make Northern Netherlands the energy region

  • Energy
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We need to do smart things together. That is the very brief summary of the round table discussion on what the energy transition means, can mean or should mean for the Northern Netherlands. Under the name Power of the North, NOM facilitates several roundtable discussions on topics of importance to the Northern Netherlands. The first one was on Wednesday, January 26, 2022 about energy transition.

This is immediately a substantial issue to tackle. The transition offers challenges for the Northern Netherlands, but we would rather talk about the opportunities, which - everyone seems to agree - are enormous. Great news, of course, with the note that getting opportunities is different from cashing in on them. And how the latter should be done is the subject of strong opinions, heartfelt advice and dire warnings. Many of these could be heard live online during the meeting. The Northern Netherlands is the logical choice as a pioneering region in the energy transition. Not only does the North say so, The Hague says so as well.

In the words of Sandor Gaastra, Director General of Climate and Energy on behalf of the Ministry of Economic Affairs and Climate (EZK), "Hydrogen is becoming increasingly important and the North is already leading the way in this. The entire energy policy requires a lot of green energy and that too is concentrated in (the sea above) the Northern Netherlands. Many industrial consumers of hydrogen are in the North and such a pioneering role means economic perspective in a region that deserves it.

Hydrogen is becoming increasingly important, and in this the North is already leading the way.

Sandor Gaastra, director general of Climate and Energy
On behalf of the Ministry of Economic Affairs and Climate (EZK)

Gezamenlijke agenda nodig

Hydrogen. The magic word has fallen. In the Northern Netherlands the expectations of it are high, in Europe the expectations of the Northern Netherlands in this respect are just as high. In the coming years billions are available for climate policy. That a hefty portion has been set aside for hydrogen initiatives is clear. And the Northern Netherlands must grab those billions, in numerous areas. In infrastructure, mobility, storage of green energy, industry, as a replacement for natural gas and more: in Groningen and its surroundings, essentially everything is ready for realization.

But what are we spending it on? That's an easy question with a difficult answer. Do we start with education? Should the money go to smart startups, or rather to existing companies? Do we need resources to attract staff? Is it useful to start working on public and business support first?

Perhaps it would be helpful to first undertake a thorough study. In doing so, it is essential to look realistically at bottlenecks and at plans and forecasts.
Marieke Abbink-Pellenbarg, CEO of the New Energy Coalition, says exactly what is needed. "We need to make a plan together with companies, education and government, an agenda. What task lies ahead of us, where do we want to go and how are we going to do it. Only then should we distribute the pots of grant money.''

Does that sound logical? Sure, but in practice it doesn't always work that way by a long shot. It can be exactly the difference between getting opportunities and cashing in. That's not just down to entrepreneurs preying on their own subsidies, explains Jasper Honkoop (EZK). "It's tricky. Different subsidy streams come from different governments and all have their own rules and timelines. It has our attention.''

Laws and regulations

Cooperation between knowledge institutions and entrepreneurs is essential. But cooperation applies in many more areas. In order to make serious strides and achieve goals, it is necessary to get governments on board. Laws and regulations must be adjusted here and there so that more can be done more quickly. In infrastructure, for example. Robert Kuik, network development manager at TenneT, wants to adapt networks for the future: "We know how to meet the challenges in energy transition, but the route of licensing, appeals and objections takes so long that valuable time is lost.''

Dina Boonstra, director of NOM, sees the same problem. "Entrepreneurs of existing companies and innovative start-ups are eager to make their contribution to the transition, but too often they still run up against outdated legislation.'' One example: a provider of mobile charging stations is being held back by laws based on stationary variants.

An interesting idea could be to set up "regulation-free zones" (term of VNONCW-North director Sieger Dijkstra). Innovations could be experimented with in these zones. Not quite according to the current rules, but wonderful solutions for energy transition.

Bringing everyone

Another bump to take in the process: how do we get everyone on board? Support is essential for the success of plans. The first observation here is that the enormous task of energy transition is still unknown to many people. Unloved as a result. The subsidized provision of hybrid heat pumps seems like a good idea. This would not only help the climate directly, but would also bring the urgency to the attention of more people.

Thought a little further along that line, citizen participation is a great tool. Let people share in revenues from new technology for generating green energy. Or, more rigorously: perhaps we should reverse procedures to create more support. Why not let citizens decide where infrastructure will be built, instead of presenting plans that have already been made? Incidentally, there is also the danger that this takes the speed out of the progress process. If everyone gets a say, who makes the final decision? And do we accept the possible extra costs?

Strength Of The North

Staff

Groningen has everything it needs to remain the gas traffic circle of Europe, but of a different type of gas: hydrogen. The infrastructure is already in the ground, the knowledge is still there. That knowledge must remain, or rather grow. And that is a serious challenge, perhaps the biggest one in the entire plan for Groningen to remain or become the energy region. It has been calculated that the energy transition will create some 20,000 jobs in the North. But who is going to fill those job vacancies?

That is a serious problem. There is already a significant shortage in technical occupations. And then numerous other specialists are needed. Sociologists, lawyers, psychologists, they are all needed. Good news: the number of students in Groningen has increased in recent years, which implies that more talent will enter the labor market in the coming years. They will have to stay "here," however, and a lot is being done about that. Covid may have given a boost in that regard. Working from home suddenly makes the Northern Netherlands a lot more attractive as a place of business.

Sustainable energy valley

But more needs to be done. For starters, students need to know what is happening and possible in the North. The times when they naturally sought careers elsewhere should be put behind us. In fact, massaging should start much earlier. More young people should be allowed to aspire to a technical education. Perhaps studies should be designed differently. Something broader for more appeal. What applies to laws and regulations may also apply to education.

The energy transition is too big for the existing frameworks. Other assessment criteria could be used to ensure that a broader group of young people are attracted to the training. And thus a larger group will be trained for the wide range of tasks involved in the energy transition. Everything to help solve the enormous task.

Companies that are already facing a shortage of young technical staff and want to discuss this with the various knowledge institutions or have ideas on how to address this, often have difficulty finding the right entrances for this at the knowledge institutions. This point will be recognized and worked out in an action plan.

And furthermore, there is room for innovation in the Northern Netherlands. Literally and figuratively. To keep the 'sustainable engine' running for this, a Sustainable Industry Challenge is being organized again, with the final in 2023. Chemport Europe and the NOM have started preparations for this.

The Northern Netherlands has it, the Northern Netherlands can do it, as long as we do what we do best: seek cooperation. Perhaps everyone active in the energy transition (and there are many) should join forces and approach the challenge as a kind of cooperative. With opportunities for all and bumps smoothed out in unison. In 2035 the Northern Netherlands will be the sustainable Energy Valley, the place where accumulated knowledge, large and small companies and startups grow together to great heights, the place to be if you want to do something with sustainable energy.