The right infrastructure is crucial for the energy transition. Pipelink, a subsidiary of Port of Antwerp-Bruges, owns and operates 750 kilometres of pipelines in Belgium and is an important link in making transport and industry more sustainable. We spoke with Hakim Boutkabout, Managing Director, and Tom Hautekiet, Chairman of the board of directors of Pipelink.
Hakim, you recently started as the new managing director. What is your vision for Pipelink?
Hakim: “Pipelink is a lever to realise the strategy of Port of Antwerp-Bruges and North Sea Port. This strategy consists of being a facilitator for the energy transition. We are building infrastructure that helps industry become more sustainable, with a focus on importing hydrogen (carriers), exporting CO2 and developing multi-access backbones. In the process, we are helping our industry get a firmer foothold.”
How can pipelines make a difference for the energy transition?
Tom: “Pipelines offer several advantages. They are safer because you are transporting the product underground. They are more economically attractive: once they are laid, transport costs are low. And they are more sustainable because they use less energy for transport. Moreover, they ensure industrial anchoring: companies that invest in pipelines make a long-term commitment to a given location.
For green molecules, such as ammonia and hydrogen, they can therefore provide a cheaper alternative for transport. Other innovations, such as the backbone, also help in this regard. We assume the costs for part of the pipeline, making the investment cost smaller for companies at the port.”
What three priorities are at the top of your list, Hakim?
Hakim: “Pipelink supports customers in financing and realising their pipeline projects, so that they can concentrate on their core business of operating plants without having to worry about supply and discharge pipelines. In this way, Pipelink takes away the hassle for industrial players.”
1. Fluxys C-grid
“At the top of my list is realising the CO2 infrastructure via Fluxys C-grid. This is a joint venture with Fluxys to build and operate a national CO2 pipeline.”
2. Multi-access backbones
“After that I want to focus on developing multi-access backbones. In addition to a CO2 backbone, we want to take concrete steps towards a pipeline network for ammonia.”
3. Ammonia pipelines
“The third priority is to start specific ammonia pipelines, an essential building block for various industries already currently active in the port.”
What are the main challenges for Pipelink?
Tom: “The biggest challenge is that we have to make choices now for future molecules, without any certainty of what that market will look like in a few years. Investing in pipelines is a long-term decision. For ammonia and CO2, you have to start investing now, without knowing whether the scenario will unfold as you hoped. In addition, legislation plays a major role. It is either at the very early stages or emerging, and in any event highly variable. This uncertainty makes investing more difficult.”
Hakim: “We are seeing a difference in the shift from the Green Deal to the Clean Industrial Deal. The Green Deal focused primarily on green hydrogen. The Clean Industrial Deal focuses on CCS, as a necessary intermediate step. CCS is more feasible from both an economic and technical perspective.”
CCS projects demand a team effort. How do you tackle those projects?
Tom: “No single party can realise any of this alone. The scale and complexity of these projects require collaboration. Antwerp@C is a good example: 8 companies that have traditionally been competitors are now working together on CCS. Fluxys C-grid and the involvement of North Sea Port also show that different stakeholders are joining forces. Pipelink plays an enabling role in this regard by providing infrastructure that supports a broad group of industry players.”
What connections to Germany are envisaged?
Hakim: “The main project of Fluxys C-grid is the development of two CO2 pipelines. A southern line for supercritical CO2 from Eynatten to Zeebrugge. And a northern route for standard compressed CO2. The message we therefore want to send to German issuers is: we are ready. Once they decide to build their storage facilities, we can move very quickly.”
