faculty of law
groningen centre of energy law
Date 13-05-2011 | 1
Underground Storage in the
Netherlands
Wellington, 15 May 2013
Martha Roggenkamp
faculty of law
groningen centre of energy law
Date 13-05-2011 | 2
faculty of law
groningen centre of energy law
Date 13-05-2011 | 3
Legal Framework Underground
› Until 2003 the Mining Act of 1810 applied
to the extraction of ‘mines’. Concessions
were awarded in perpetuity and full
ownership of ‘mines’ to concessionaire
› In 2003 new Mining Act entered into force
for onshore and offshore activities
› Mining Act provides for separate licences
for exploration and production of minerals
and subsoil storage
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groningen centre of energy law
Date 13-05-2011 | 4
Subsoil Storage
› Separate licence for subsoil storage of
‘substances’, i.e. gas or CO2. A storage
licence is exclusive
› Onshore storage licences could only be
awarded to those persons holding a
concession
› Since 2009 the Minister has the power to
limit the scope/area of the licence
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groningen centre of energy law
Date 13-05-2011 | 5
Subsoil gas storage
› Gas storage in depleted fields or salt
caverns for supply security or flexibility
services
› Gas storage facilities require sufficient
quantities of cushion gas.
› Future licensees may need to compensate
previous licensee/concessionaire
› The Gas Act provides for a system of third
party access to the storage reservoir
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groningen centre of energy law
Date 13-05-2011 | 6
Subsoil Storage of CO2
› Mining Act 2003 has been amended in
order to implement EU directive on CCS
› The Act now also provides for exploration
permit and system of competitive bidding
› Strict provisions regarding licensing,
monitoring, closure and post closure
› Storage licences have not been issued
despite onshore capacities.
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groningen centre of energy law
Date 13-05-2011 | 7
The Case of Barendrecht
› Capture of CO2 from refinery Rotterdam
› Shell refinery produces 1 Mtonne pure
per year. Currently:
 100 Ktonne for food industry (all year)
 450 Ktonne for greenhouses (summer)
› Shell aimed at storing remaining CO2 (350
Ktonne) in two almost depleted gas fields
around the town of Barendrecht
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groningen centre of energy law
Date 13-05-2011 | 8
Barendrecht fields
› Barendrecht fields were considered suitable as:
 Geological characteristics are well-known
 Few wells (limited risks for leakage)
 Close to source (limited transport costs)
 First field is small (800 Ktonne injection in 34 years) and suitable as it could give
opportunity to go through whole process
› Shell is involved in entire CCS chain as
capturer and ‘owner’ of the subsoil reservoir
faculty of law
groningen centre of energy law
Date 13-05-2011 | 9
National vs Local government
› National government in favour as CO2 storage
is instrument to meet climate change goals.
› Local government was opposed as population
feared leakage and decrease in property value
› Local governments award necessary planning
and/or environmental permits
› Under ‘National planning coordination law’ and
‘Crises and Repair Act’ the Minister may
overrule local government and decide about
storage without appeal local government
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groningen centre of energy law
Date 13-05-2011 | 10
From onshore to offshore
› Poor communication between national
government and local community has brought
an end to onshore carbon storage.
› Two attempts for offshore CCS.
 ROAD project: capture by E.ON Benelux and
Electrabel/GdF Suez and storage in offshore
field of Taqa
 Green Hydrogen: capture by Air Liquide and
storage (EOR) in Denmark
› Problems with financing/EU subsdies
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groningen centre of energy law
Date 13-05-2011 | 11
Conclusion
› Mining Act governs subsoil storage of gas
and CO2. Who decides?
› Subsoil storage of CO2 hampered by poor
communication between government and
local community and affects gas storage
› Goal of Netherlands to become gas or
CO2 hub is also affected
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groningen centre of energy law
Date 13-05-2011 | 12
Thank you for your attention