Hydrogen Infrastructure Project Risks in The Netherlands

Pieter W. M. Vasbinder, Antoine W. G. de Vries and Wim Westerman
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Pieter W. M. Vasbinder: Department of Economics, Econometrics and Finance, Faculty of Economics and Business, University of Groningen, Nettelbosje 2, 9747 AE Groningen, The Netherlands
Antoine W. G. de Vries: N.V. Nederlandse Gasunie, Concourslaan 17, 9727 KC Groningen, The Netherlands
Wim Westerman: Department of Economics, Econometrics and Finance, Faculty of Economics and Business, University of Groningen, Nettelbosje 2, 9747 AE Groningen, The Netherlands

Energies, 2021, vol. 14, issue 19, 1-19

Abstract: This study aims to assess the potential risks of setting up a hydrogen infrastructure in the Netherlands. An integrated risk assessment framework, capable of analyzing projects, identifying risks and comparing projects, is used to identify and analyze the main risks in the upcoming Dutch hydrogen infrastructure project. A time multiplier is added to the framework to develop parameters. The impact of the different risk categories provided by the integrated framework is calculated using the discounted cash flow (DCF) model. Despite resource risks having the highest impact, scope risks are shown to be the most prominent in the hydrogen infrastructure project. To present the DCF model results, a risk assessment matrix is constructed. Compared to the conventional Risk Assessment Matrix (RAM) used to present project risks, this matrix presents additional information in terms of the internal rate of return and risk specifics.

Keywords: hydrogen infrastructure; risk identification; project comparison; discounted cash flow model; risk assessment matrix (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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