International opportunities in the energy transition

Research
Trade policies of the Dutch Ministry of Foreign Affairs supports Dutch entrepreneurs at various stages by offering financing instruments and leveraging economic diplomacy through networking, information sharing, and advocacy. In doing so, the policy places a priority on advancing greening opportunities. In order to deploy its instruments effectively, the Ministry of Foreign Affairs asked SEO Amsterdam Economics to conduct an exploration of international opportunities for Dutch companies within the energy transition.

Results
The study identified eight sectors in which there are international opportunities for Dutch companies:

• Hydrogen trading
• Hydrogen applications
• Biofuels
• Offshore wind
• Specialist solar panels
• Batteries
• Charging infrastructure
• Capture and storage of CO2

For each of these sectors, there is a cluster of companies in the Netherlands that is technically at the forefront. This offers international opportunities to contribute to the energy transition and thus to various sustainable development goals elsewhere as well.

At the same time, the sectors have significant differences. On the one hand, some markets are already well developed (offshore wind, biofuel), while in other markets there are opportunities but with greater uncertainties (hydrogen trading and applications). In addition, for several sectors, the Dutch position is currently still modest, but promising innovations are taking place (specialised solar panels, batteries and CO2 storage). Finally, the market for charging infrastructure is of modest size, but Dutch companies have a strong position within it.

The Ministry of Foreign Affairs and government policy in a broader sense can contribute to the further international development of these promising sectors through various instruments.

Method
Within the study, six different energy sectors were first selected for deepening, based on desk research and interviews (electricity, industry, mobility, agriculture, built environment and hydrogen). Then, within these sectors, the areas in which there are international earning opportunities were examined. Various data were used, such as the number of patents and the relative export position of Dutch companies within a sector, as well as interviews with a large number of experts. In the case of earning opportunities, the primary focus was on opportunities for Dutch business, but attention was also paid to the contributions sectors can make to the Sustainable Development Goals and CO2 reduction. This resulted in eight promising sectors. These were then explored in more detail, thereby looking at opportunities and threats and what role Dutch policy can play, with a specific focus on trade instruments.