The extended value chain required for green hydrogen projects introduces considerable investment complexity, as capital allocation risk increases when multiple stakeholders must collaborate across interconnected project phases. Examining the case of the Zeevonk green hydrogen project in the Netherlands demonstrates these challenges. The project was selected as the largest winner in the EU’s second hydrogen auction with a 560MW electrolyser bid and was designed to operate alongside the 2GW IJmuiden Ver Beta offshore wind farm. The project secured support at EUR0.60 per kg, but its timeline was disrupted by delays to the DRC hydrogen pipeline.
The DRC, a key transport link for green hydrogen from Rotterdam to regional markets, was initially scheduled for completion in 2028 but is now delayed to 2032 due to regulatory bottlenecks, technical issues, and the need for broad stakeholder alignment. This delay means Zeevonk’s electrolysis plant cannot be completed before 2032, missing the European Hydrogen Bank’s eligibility requirement for operations and off-take by 2030. Consequently, Zeevonk withdrew from the auction, despite Vattenfall’s ongoing commitment to green hydrogen.
As a result of the DRC delay, Zeevonk has reduced its planned onshore hydrogen capacity from 1GW to at least 500MW. The wind farm will now be developed in two phases: 1GW operational in 2029 and a second 1GW in 2032, dependent on the DRC’s completion. Without the pipeline, Zeevonk cannot economically deliver hydrogen to market, undermining the project’s viability.
Zeevonk’s experience highlights how infrastructure delays and regulatory uncertainty can force major changes in project scope, financial structure, and eligibility for EU support, increasing capital risk for hydrogen developers. We also outline that given the complex challenge of linking these projects the EU’s rules on timeline create an even more challenging environment for developers along side rising costs.
