ROTTERDAM RIJN PIJPLEIDING: Energy Transition Continues Underfoot Thanks to RRP
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“The broader public doesn’t always know that the energy transition is happening under the ground, but that is very much a part of it,” says Dick Hosman, Managing Director of Rotterdam Rijn Pijpleiding The pipeline fuelling industry across the Netherlands and Germany is adapting to become a vital player in the future of energy product delivery.
Europe’s energy market is changing, spurred by the longstanding desire for cleaner, more efficient generation and now restrictions on oil and gas from Russia. The whole concept is challenging and pricing for consumers is one of the key considerations. But it is manageable and, according to the industry leaders, now is a time for excitement and innovation as the positive transition continues. Some of the world’s largest energy majors have now fully invested in alternative energy supplies – wind, solar, hydro, wave, biomass, and more – but the industry is a highly connected and collaborative one, where you cannot simply turn off one supply and turn on another. As generators and governments turn to renewable ideas as part of the transition, those that deliver energy, must adapt too. Two concepts in particular are being touted as valuable future provisions – hydrogen and carbon capture utilisation and storage (CCUS). Potentially suitable to connect into and flow through existing pipeline infrastructure, mass amounts of money are already committed to hydrogen and CCUS R&D. Thankfully, the transportation systems used for decades to move oil and gas, are also prepping for a new direction.
The Rotterdam-Rijn Pijpleiding is a great example. Currently, this marvel of infrastructure delivers around 25 million tonnes totally (16 million tonnes crude oil and 9 million tonnes of products) from Rotterdam in the west of the Netherlands, across the entire country, to Venlo in the east, before transferring into Germany to the German refineries in Gelsenkirchen and Cologne or the product pipeline of RMR.
The entire system is underground; nothing unsightly, no smell, zero noise, and no physical feeling whatsoever. Since 1958, Rotterdam-Rijn-Pijpleiding Maatschappij (RRP) – with shareholders Shell and bp – has moved energy products through its 457 km pipeline with flawless safety and environmental records. Impressive pumps build pressure in Rotterdam and the flow of material begins as experts load fuels and other products from tanks at Botlek, Europoort and Maasvlakte.
“For more than 64 years we have been doing this safely, reliably, and we believe we are the best at what we do in this market,” RRP Managing Director, Dick Hosman, tells Energy Focus.
“Our ambition is to accelerate the energy transition and to run and maintain the future infrastructure connecting clean hydrogen and CCUS facilities with industry in the Netherlands and Germany.”
But now is the time to look beyond the horizon. As the EU sets climate targets that involve the eventual removal of traditional fossil fuels from the energy mix, RRP must adapt, not totally reinvent, but reimagine its position in the market, becoming an enabler of clean, future proof products that drive economic growth in Europe. Hosman is excited about the new Delta Corridor project which will link clean hydrogen and CCUS projects into the region’s energy network.
Marjan van Loon, Director of Shell Nederland, says: “Connecting the clean hydrogen and CCUS facilities, we are currently realising with our energy and chemical parks in Pernis, Moerdijk and Rhineland, will be a major contributor to reaching our goals to lower our emissions. Building scale and providing the capacity to other industry partners makes perfect sense. Large scale international pipeline transport of energy is also a proven concept with our existing RRP pipeline system. The greenhouse gas reduction challenge for industry can only be tackled together with support from partners in the industry, governments, and society.”
Karen de Lathouder, Head of Country bp Netherlands adds: “The connection between Rotterdam and the industrial heartland of Germany in north rhine westphalia is important. Today it transports fossil products across the border, tomorrow a broader range of products including bio-products and hydrogen but also CO2 will be conveyed to meet the 2030 and beyond climate targets. bp drives taking this connection to the next level, together with our stakeholders.”
DELTA CORRIDOR
In June 2021, RRP and the Port of Rotterdam Authority launched a feasibility study to understand more about the potential of new pipelines to move new product streams, including hydrogen, between the Netherlands east and west, and further into Germany. This joint study built on previously completed research from the Port Authority, Chemelot (a large industrial complex in Limburg) and the Dutch state, which confirmed demand for a new pipeline and for new products.
The proposed route was decided; beginning in Rotterdam and flowing via Moerdijk, Tilburg and Venlo to Chemelot and North Rhine-Westphalia. Additional opportunities around power cables, more pipelines, and extra routes into industrial clusters at the Netherlands-Belgium border are also being examined. As the Delta Corridor would run parallel to the existing RRP pipelines, the company holds unique involvement in project planning.
An overarching vision of crude oil (and eventually hydrogen) being sent east from Rotterdam, with captured CO2 coming back to be stored in the North Sea, and ammonia and other biofuel products sent to industrial zones in Limburg – seems to be a closer reality than ever before, as the energy transition gathers pace. Clearly, pipeline operators act as the arteries in this heartbeat of European industries.
In April 2022, a cross industry coalition of well knows multinationals and organisations based in Germany and The Netherlands announced their support for a detailed feasibility study being conducted by a consortium together with RRP. This coalition consist of industry heavyweights including the Port of Rotterdam, Shell, bp, RWE, ThyssenKrupp, LyondellBasell, HeidelbergCement, Attero, and Chemelot. The Dutch government is engaging local municipalities to understand challenges. Expectations are that pipeline operations could begin as soon as 2026
As a standout player in the industry, RRP and Hosman have no doubts about ability to operate with maximum efficiency.
“We are the right party to work on this. We are knowledgeable, experienced, we know what we are doing, and we are able to join into teams,” he says.
“Currently we are operating two pipelines across the Netherlands and Germany. The new energy transition pipelines are envisaged along RRP’s existing pipeline corridor. Given our specific knowledge in the pipeline industry in general, and the knowledge and experience along this specific corridor, RRP can accelerate the implementation of this important project. RRP has established right of way, knows all the landowners, understands local issues, and has good collaboration with local government and authorities (e.g. permitting). This project is definitely extremely important to accelerate the whole process.”
Edwin van Espen, Manager Delta Corridor for the Port of Rotterdam Authority, highlighted the significance of the project in the energy transition: “We can see growing pressure for a timely implementation of the agreed climate goals. The Delta Corridor will prove particularly important to Dutch and German industrial clusters when it comes to implementing their programmes. As such, this project can make a concrete contribution to the development of a sustainable economy, prosperity, and employment. In addition, it will have a positive effect on the liveability of the areas along the railway tracks, as an underground pipeline corridor will diminish the use of the railway system for the transport of these goods.”
Underground pipelines reduce traffic by road and rail in a big way. In 24 hours, RRP can shift 107,000 tonnes under high pressure which is the same as 4.000 truck journeys, 80 trains loads, or 45 inland vessels. This value in saved emissions should not be overlooked, especially when added to the fact that underground pipelines have no traffic queues and are safe and predictable, even when loaded with hazardous substances such as CO2, O2, N2, chlorine, vinyl chloride, and ethylene oxide. Even the heavy pumps in Rotterdam are powered with CO2-neutral nuclear energy.
“RRP does not consume or transport heavy fossil carbon fuels, so this is no issue,” confirms Hosman, when asked if the proposed pipeline could be harshly scrutinised from an environmental perspective. “The transition to a free hydrocarbon economy is of course another big step in the future, also because the general public is not fully aware that many end-products do contain hydrocarbons. As long as hydrocarbons are not being converted (burned) into CO2, it will not directly impact climate change.”
Loek Radix, Chemelot Executive Director, says: “For Chemelot the feedstock and energy transition necessitate that we have easy access to circular feedstock and energy. We are very well positioned to become carbon neutral by 2050, but there will be a major logistical challenge. The Delta Corridor is therefore a crucial precondition. A shift away from traditional modalities (rail, road, water) is also essential to gain a broad societal support for the transition”.
PERFECT TIMING
The war in Ukraine has piled pressure onto energy suppliers around Europe, accelerating the need to move away from Russian gas supplies. As sanctions continue to ramp up on Russian exports, countries traditionally reliant on Russian gas are fast-tracking plans to diversify their energy mix. Germany, Italy, the Czech Republic, Romania, and more have started with strategies to source gas from alternative international partners including Qatar, the USA, and north African nations. Spain has previously been pushed as a perfect landing point for international gas supplies, but its poor connectivity into mainland Europe is a hurdle. Rotterdam is perfectly situated and has effective infrastructure in place.
Allard Castelein, CEO of the Port of Rotterdam Authority, says: “The Delta Corridor is the key for inland industry clusters to bring their processes in line with the Paris climate goals and the European Fit for 55 programme. The timely supply of especially hydrogen in combination with CO2-storage opportunities, truly helps the industry to drastically reduce their emissions. Connecting industry clusters via Rotterdam is the most efficient route. The corridor is also beneficial for the economy and the future earning capacity of Northwest Europe. I am delighted to see that more partners are joining this strategic important public-private partnership.”
Hosman agrees: “We are interested in securing a future by using all the knowledge and experience that we have and looking at what we are doing today – ensuring that continues – while expanding our company by adding to the energy transition.
“The drive for independency to Russian energy is an enabler to invest in alternative energy supply and therefore infrastructure. This is perfectly timed with the needs around energy transition.”
“Apart from Delta Corridor, RRP is actively taking part in the energy transition by looking into how to utilise our current pipeline system for biofuels. RRP is already looking how to transport synthetic molecules such as Sustainable Aviation Fuel (SAF), ETBE and other biofuels safely through our pipelines and therefore helping the energy transition. In fact, we are already transporting diesel with fossil free components (HVO (Hydrotreated Vegetable Oil)) through our system since 2020,” he adds.
Building new pipelines to accelerate the energy transition is an option but requires careful planning. Currently, the underground network of pipelines around Europe is large and complicated. Telecoms, utilities, defence and more, all have thousands of kilometres of pipe buried beneath the earth, working away silently and safely. So new construction would require digging deeper, stacking pipelines, using new materials, and working above ground to get projects approved. According to Hosman, everyone understands the need to grow infrastructure, but no one wants it close to them. Often, underground pipelines require protection above ground and can need 35m clear zone either side of the pipe route. This means no construction, industrial development, excavation, or even trees (roots can damage pipelines), and this can be expensive and unattractive to administer – helicopters and satellites are called in to provide an overview.
This drives the argument for existing pipelines and infrastructure experts to be utilised.
“Our strategy is focused around three pillars,” says Hosman. “Firstly, ‘Run and Maintain’, which encapsulates our push for operational excellence, focusing on our core activity and value creation for our shareholders by continuing to supply our customers with oil and oil products in a reliable, safe, sustainable, and efficient manner. Secondly, ‘Developing Sustainability’ by improving infrastructure (largely along our existing pipeline network), will accelerate the implementation of the energy transition and/or transport security.” This will be done alongside shareholders and stakeholders and will contribute to accelerating the transition to a CO2-neutral energy supply.
“Finally, ‘Earn Our Future’,” furthers Hosman. “This ties to operational excellence. Through our existing knowledge and experience and through the synergy with our existing pipelines, we are a very attractive partner for the future operation and management of new infrastructure,” adding that the company would look to operate other pipelines on behalf of clients, thanks to its unrivalled capability and experience, to achieve growth.
ALL STARTS WITH PEOPLE
Of course, the experience and knowledge that separates RRP as an historically successful business comes from people. Highly skilled and diverse, the RRP workforce has always been the most important asset behind expansion.
“Our employees, our people, make RRP,” admits Hosman. “We are convinced that with motivated, well-trained, properly coached, honest, satisfied, and cooperative employees, we can deliver the excellent performance that we aim to achieve. We take good care of ourselves, the people, and the environment around us.
Naturally, safety sits at the head of the company’s priority list and has been a success for decades with no harm, injuries, or leaks: Goal Zero. This is achieved through innovative use of technology, focused approach to daily activities, highly skilled employees, and strict adherence to government guidance and global standards.
“Our staff, contractors, other companies and people who work for or with us must be able to return home safely every day,” states Hosman. “We do it safely or we do not do it. Goal Zero is an ambitious target; an objective that is appropriate for a responsible company such as RRP. This requires high standards in terms of plant integrity, process, and work safety. Everyone who works at RRP has a responsibility to make an effort to achieve safety, health, well-being, environment and customer satisfaction objectives – it all starts with people.”
If RRP and partners can successfully deliver the Delta Corridor project, and provide insight and research into further opportunities around the energy transition and its need for underground progress, then the business will further strengthen its position in the market as a recognised industry leader for both excellence and safety.
“We are a safe and innovative pipeline company that excels because it is a leader in its sector. By using our experience, knowledge, skills and passion, we can play an important role for our shareholders and society in accelerating a controlled energy transition for a sustainable future,” reiterates Hosman.
“I am re-positioning RRP for a sustainable future,” he concludes, setting RRP as the European partner of choice for pipeline planning, development, management, maintenance, and security.