Energy, Automobile, EV, Renewable News | Dutch energy security at risk without investment allowance

Dutch energy security at risk without investment allowance

October 20, 2022

Neptune Energy today called on the Dutch government to introduce an investment allowance in its plans to raise levies on energy companies, to avoid risks to the country’s energy security and net zero targets.

The government intends1 to significantly increase levies under the Mining Act for the energy sector in 2023 and 2024, with additional tax revenues helping finance support for Dutch homes and businesses facing high energy bills.

While recognising decisive action by government is needed to support households and businesses with high energy costs, Neptune is urging Ministers to include an investment allowance in its tax plans, similar to measures already in place in Norway and the UK.

In recent years, investment in the Dutch North Sea has fallen to only a fraction of that in Norwegian and UK North Seas. As a result, substantially higher levels of investment will be required in the near term to achieve anything near the increased gas production potential as outlined by the Ministry of Economic Affairs2.

As the largest offshore gas producer in the Dutch North Sea, Neptune plans to invest around $1 billion in the Netherlands over the next five years to support energy security. With an appropriate fiscal regime in place, the company could invest a further $1 billion, including in lower carbon developments, repurposing existing offshore infrastructure to support carbon capture and storage and hydrogen production.

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