Wind-Powered North Sea Natural Gas Project Halted Over Emissions Uncertainty

• A Dutch court has suspended a proposed gas drilling and extraction project in the North Sea due to the uncertain impact of nitrogen compound emissions.
• The offshore gas project was designed to run entirely on wind energy and was issued the final permit by the Dutch government in June 2022.
• The natural gas extraction project, proposed by ONE-Dyas with an investment of over $552 million, is suspended until a new court ruling in September 2023.

A court in the Netherlands has suspended a project for natural gas drilling and extraction in the North Sea due to potential environmental damage.  

The offshore gas project, proposed by Netherlands-based company ONE-Dyas, was approved by the Dutch Ministry of Economic Affairs and Climate in June last year. The Dutch government issued the final permit for the proposed gas field, thus allowing the production of natural gas from the N05-A field and surrounding fields in the North Sea. The N05-A platform is located in the North Sea, about 20 kilometers (12 miles) north of the islands of Borkum, Rottumerplaat, and Schiermonnikoog.

A thorough environmental review of the project was made before its approval, and the field is designed to run entirely on wind energy from the nearby Riffgat wind farm, which would further reduce the emissions. 

However, Dutch judges halted the project on Wednesday, citing the uncertain impact of nitrogen compound emissions associated with the rig and gas extraction, Dutch media report. 

“We will look at the options in the coming week,” the operator of the project, ONE-Dyas, said, commenting on the court ruling to broadcaster NOS.

ONE-Dyas, together with its partners EBN and Hansa Hydrocarbons, took in September 2022 the final investment decision (FID) to develop the N05-A gas field in the North Sea. The decision involves an investment of more than $552 million (500 million euros), which is the largest investment in a natural gas development in the Netherlands in the past 15 years. 

In September, Chris de Ruyter van Steveninck, CEO of ONE-Dyas, said, “This is an important step for the energy supply of the Netherlands and Germany, providing safe and responsible domestic natural gas.” 

“We have agreed to produce natural gas from the GEMS area only as long as there is domestic demand for natural gas in the Netherlands and Germany.” 

The field is scheduled to begin production in 2024, but work on the project will now have to stop until a new court ruling in September 2023. 

By Tsvetana Paraskova for Oilprice.com

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