P R I S M : “ S P E E D I N G U P T H E E N E R GY T R A N S I T I O N I S K E Y: W E H AV E P U T O U RF O O T O N T H E A C C E L E R AT O R ”“SPEEDING UP THE ENERGY
TRANSITION IS KEY:WE HAVE PUT OUR FOOTON THE ACCELERATOR”

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AN INTERVIEW WITH
PASCAL DE BUCKPASCAL DE BUCKCEO AND MANAGING DIRECTOR OF FLUXYS

Pascal De Buck (°1966) is the driving force behind Fluxys and its

1,300 employees. He joined the company in 1995, came on board

the management team in 2008, and has been CEO and Managing
Director since 2015. Pascal studied Law, Industrial Policy, andFinancial Management, and also graduated in the IESE Business
School’s Global CEO Program.

Headquartered in Belgium, Fluxys is a fully independent infrastructuregroup with 1,300 employees active in gas transmission & storage andliquefied natural gas terminaling. Through its associated companies
across the world, Fluxys operates 24,000 kilometers of pipeline
and liquefied natural gas terminals, totaling a yearly regasification
capacity of 380 TWh. Among Fluxys’s subsidiaries is Euronext, listed
Fluxys Belgium, owner and operator of the infrastructure for gas
transmission & storage and liquefied natural gas terminaling
in Belgium.
As a purpose-led company, Fluxys, together with its stakeholders,aims to contribute to a better society by shaping a bright energy
future. Building on the unique assets of its infrastructure andits commercial and technical expertise, Fluxys is committed totransporting hydrogen, biomethane, or any other carbon-neutralenergy carrier, as well as CO2, accommodating the capture, usage,and storage of the latter.

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THE TRANSITION TO NET ZERO
The energy transition to enable net-zero targets by 2050 is a reality
being addressed by the energy sector. This includes the global gas
transport infrastructures that today provide reliable and consistentenergy supply to industries and households across the world. Theseinfrastructures will need to diversify and transform to do theirpart in helping to deliver on climate targets by providing means fortransporting alternative gases, such as hydrogen and carbon dioxidefrom carbon capture.
We talked to the CEO and Managing Director of Fluxys, Pascal De
Buck, to understand his perspectives on the contribution of thehydrogen economy toward achieving net zero.

W H AT W I L L I T TA K E F O R T H E H Y D R O G E NECONOMY TO CONTINUE TO GROW IN
THE FUTURE?
We need to move, and to move now, to reach these targets. Thatmeans we must speed things up. As an essential infrastructure
partner with our 1,300 employees across Europe, Brazil, and Chile,
we are developing infrastructure for hydrogen and CO2 to ensure a
rapid scale-up of decarbonization solutions. The speed of the energy
transition will – more than we“INFRASTRUCTURES WILL
NEED TO DIVERSIFY AND
TRANSFORM TO DO THEIRPART IN HELPING TO DELIVER
ON CLIMATE TARGETS.”

can imagine today – largely
impact the competitivenessof European industry, andthus employment. That is
why every type of support,
be it technological, financial,or legal, from the European
Union is crucial. A regulatory

framework for both H2 and CO2 infrastructure is also key to ensure
we reach the EU’s 2030 CO2 reduction targets. (Note: in May 2023,
the hydrogen and decarbonized gas market package was not yet
finalized.) At the same time, quickly decarbonizing our industries,
ensuring the availability of enough low-carbon hydrogen, will
be a challenge.

HOW DO YOU SEE THE SYMBIOSISOF ELECTRONS AND MOLECULES,P A R T I C U L A R LY I N T H E E U R O P E A N
CONTEXT?
The answer lies in the word symbiosis. I am a strong believer in an
integrated energy system where electrons (energy from electricity)and molecules (energy from gases) work together in a mutually
beneficial relationship. I often refer to this symbiosis as an “and-and”
approach for our future energy mix. By putting together the strengths

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of carbon-neutral electricity and carbon-neutral molecules such ashydrogen, biomethane, synthetic methane, and biofuels, one can build
an affordable, always-available, and sustainable energy system.
Some voices advocate for extensive electrification and minimizing
key features of an energy system and the cost/benefit ratio ofelectrification in the long term. In view of security of supply, a morebalanced energy mix with molecules is preferable. Imagine a factory
fueled with wind power. On windy days there will be an abundanceof energy, and on others a shortage. This instability of energy
supplies from renewables can be absorbed, among others, throughinterconnections, of course, butalso diversification by molecules.

“IN TERMS OF THE POTENTIALUSE FOR HYDROGEN, WE
SEE IT BEING USED TO FUEL
INDUSTRIES, TO STORE
RENEWABLE ENERGY, AND TO
PRODUCE CHEMICALS.”In addition, the outstanding power
density of molecules such ashydrogen is one of the best ways tostore and deploy renewable energy,
as one does not want to see a single
gust of wind go to waste.
The European Green Deal also refers
to a 50/50 relation of electrons andmolecules in Europe’s energy mix by 2050. Recent developmentsin this area are promising. Together with the transmission system
operators (TSOs) surrounding the North Sea – Energinet, Fluxys,Gascade, Gas Networks Ireland, Gassco, Gasunie, GRTgaz, National
Gas Transmission, and OGE – we are working towards a balanced
system of green electricity and green hydrogen from North Sea wind.

I N W H I C H A P P L I C AT I O N S O F T H E
HYDROGEN INDUSTRY DO YOU SEE THE
G R E AT E S T P O T E N T I A L F O R G R O W T H ?
Every industry that needs a constant flow of energy at an optimal
cost should consider a diversified and balanced energy mix, plus, forsome process industries, a combination with carbon capture.
In terms of the potential use for hydrogen, we see it being used
to fuel industries, to store renewable energy, and to produce
chemicals. By 2026, Fluxys’s first pipelines will be ready to transporthydrogen. This is the first step in our aim of establishing connections
between industrial zones, as well as implementing connections withneighboring countries.

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Let’s also not forget carbon capture usage and storage (CCUS),
one of the quickest ways to decarbonize some industries. Based onthese interactions, we see a market potential by 2030 for Belgium,
the North of France, and the industrial Ruhr-area in Germany ofapproximately 30 million tons of CO2 per year. (Note: Belgium industry
yearly puts out 40 million tons of CO2.) With Fluxys, we invest in anopen-access infrastructure in close interaction with these markets.

W H AT S I G N A L S D O YO U H E A R I N
T H E M A R K E T, O N B O T H D E M A N D
A N D S U P P LY ?
We notice that industries are considering various solutions
today. Some of these solutions are brought in as stand-alone
technologies, and some in combination, because of, among others,
the characteristics of an industrial process. I can think of low-carbon
molecules, carbon capture usage and storage, and electrification. So
many options are still open, and one has to be careful in advocatingfor one solution.
Our first interactions with the market currently show hydrogen
demand in Belgium at a level of 15 to 20 TWh/y horizon by 2030. Thisconfirms the 20–30 TWh/y range estimated in the study, informing
the Belgian federal hydrogen strategy and pointing at a 100–200
TWh/y demand range by 2050.

“OVERSEAS HYDROGENDERIVATIVES IMPORTED BYSHIP ARE EARMARKED TO
DEVELOP IN THE SECONDHALF OF THIS DECADE, AND
THE FIRST GREEN HYDROGEN
PRODUCTION FROM NORTHSEA WIND IS TARGETED
FOR 2030.”

The hydrogen network wehave on the table in Belgiumis also set to quickly develop
as a hub for Northwest
Europe, linking directly to theNetherlands and France, andinto Germany shortly after.
Hydrogen flows into Germany
are estimated at a level of up
to 10 TWh/y in 2030, and up
to 100 TWh/y in 2050. On thesupply side, our interactions

with the market at this stage show projects for 10 to 25 TWh/y by
2030, combining electrolyzer capacity, blue hydrogen production, andcross-border flows. Overseas hydrogen derivatives imported by ship
are earmarked to develop in the second half of this decade, and thefirst green hydrogen production from North Sea wind is targetedfor 2030.

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H OW DY N AMI C I S EURO PE C O MPARED TO
THE REST OF THE WORLD?
Europe is taking a leading role in shifting to the climate goals
set out in the Paris Agreement, and in achieving its “Fit for 55”
targets, referring to the EU’s target of reducing net greenhouse gas
emissions by at least 55 percent by 2030. With the war in Ukraine, thedependency on Russian gas has been at the center of all discussions.
REpowerEU and several other policy steps taken by the European
Union have determined the beat of the energy acceleration in Europe.

F L U X Y S H A S C O M M U N I C AT E D A L O T
ABOUT H2 BEING A GAME CHANGER –H OW D O YO U PREPARE ? H OW ARE YO U
TR AN S FO RMIN G THE C O MPAN Y IN
T H I S F U N D A M E N TA L S H I F T ? W H AT
A R E YO U R I N I T I AT I V E S ?
We have put our foot on the accelerator. As an essential infrastructure
partner, we are developing infrastructure for hydrogen and CO2 toensure a rapid scale-up of decarbonization solutions. This comes withambitious targets we have set ourselves of offering a capcity of 30
TWh of hydrogen and of 30 million tons of CO2 a year by 2030.
At the same time, we will continue enabling the supply of natural gas
to society at large for as long as is required.
To intensify our focus on energy transition projects, we haveestablished a new business unit within Fluxys Belgium, called Fluxys
nextgrid. At the center of Fluxys nextgrid’s mission is building thefirst transmission infrastructure for hydrogen/CO2 in 2026, andbringing to life terminaling projects for hydrogen and CO2 in Antwerp,Ghent, and Zeebrugge. In turn, partnering with industry, other TSOs,
and international ports is the way forward.
Simultaneously, we are rolling out large-scale digitalization projects,
developing digital solutions backed by robust business processes forour customers, employees, and other stakeholders.

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HOW DO YOU SEE THE ROLE OF FLUX YSI N T H E E S TA B L I S H M E N T O F H Y D R O G E N ?
As an essential infrastructure partner putting emphasis on anetwork accessible to all and managed by a single operator ina regulated market.
As one team, we have set ourselves the ambition to accelerate thistransition with a double mission: firstly, creating solutions for largescale decarbonization through hydrogen and CO2 infrastructures, andsecondly, providing the infrastructure needed for securing the supplyof energy. This is how we provide continuity while speeding up towards
a sustainable future.

“THE ENERGY TRANSITION IS A MAJOR
CHALLENGE FOR US ALL. AS ONE TEAM,WE HAVE SET OURSELVES THE AMBITION
TO ACCELERATE THIS TRANSITION.”

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