New option added to connection policy: third-party connection set-up
Hynetwork works in accordance with the principles and standards established in its connection policy. This connection policy is aimed at getting ahead of developments in the hydrogen market. Our goal is to encourage this development as much as possible. An increasing number of regional government bodies and other parties recently submitted requests to Hynetwork for the implementation of connection set-ups in the main network in preparation for future hydrogen developments in certain regions. Implementing a connection set-up is a good solution to be able to meet this need, which is why Hynetwork has decided to respond to these requests from (regional) parties. This has resulted in a new contract: the Valve Study Agreement (VSA)..
Now also an agreement for third parties
The aim of the VSA is to enable third parties (such as local and provincial authorities, port authorities and network operators) to enter into an agreement and the associated financial obligations with Hynetwork for the development and implementation of a connection set-up to support future hydrogen developments.
Agreement between Hynetwork and one other party
The VSA is based on the Connection Study Agreement (CSA) and can be requested by third parties. This VSA covers Hynetwork’s studies in relation to the connection set-up, and constitutes our agreement with you to work towards an agreement for implementation of the connection set-up, known as a Valve Investment Agreement (VIA). We refer to the contract party with whom the VSA is entered into as the “Valve Party”. Implementation of a connection set-up is the end of the route for the Valve Party. If one market party wants to work towards an actual connection, the regular process for becoming a “Connected Party” (CSA-IA-CA) remains in full effect.
Read more about the Valve Study Agreement and see the Q&A below.
Frequently asked questions
About the Valve Study Agreement
Does this connection set-up involve a “split tee”?
The term “split tee” is used informally to refer to a “connection set-up”. Both terms basically mean the same thing: the minimum infrastructure needed to prevent a future need for tapping.
Who pays for the connection set-up?
The Valve Party pays for the connection set-up under the articles in the existing Valve Investment Agreement. It is up to the contract party to make arrangements for mutual settlement with any associated parties.
Why do you ask for a €150,000 guarantee for the VSA?
As well as designing the connection set-up, studies need to be performed in relation to the site and dimensions. On balance, € 150,000 is an appropriate amount for a customer guarantee.
How do you determine the dimensions of the set-up?
On the basis of capacity details provided by the contract party. Annex A of the VSA has space for details such as the required site, H2 capacity and entry/exit. The contract party is responsible for ensuring the correct details are provided.
What about the OPEX costs?
The OPEX costs are settled through a Valve Agreement (VA).
Will the VIA/IA routes be separated? So there’ll be two separate routes, each for a different result?
Yes. The Valve Party can have a connection set-up implemented through a VIA. For individual parties who want an actual connection pipeline implemented, the current route from a CSA remains applicable. Also see the image entitled “How to become a customer?”.
Is a connection set-up the same as a system interface?
No, a connection set-up is the minimum infrastructure needed to prevent the need for tapping later on.
Are the any credit rating requirements for taking out the VSA?
Yes, before signing the VSA the party’s credit rating will be assessed as certainty for the customer guarantee.
What is the deadline for preparatory connection set-up (split tee) requests in my region in relation to ongoing project procedures?
The project procedures have now started in all regions. Whether your connection set-up request can still be included in the procedure depends, amongst other things, on whether the connection scheme was already part of the draft NRD, based on market interest and local circumstances, such as the vicinity of a Natura2000 area, the precise configuration of the split tee and the situation in terms of private law. This will have to be assessed in the CSA/VIA process for each individual request. Please contact us for this; we will be happy to help.
When establishing the Memorandum on Scope, the scope is generally frozen for the studies within the context of the MIA, which includes the connection set-ups. For connection diagrams that have already been drawn up, this is the most realistic deadline. For new connection diagrams, it is advisable to submit the request as soon as the Notice of Intention and Proposal for Participation have been published, so that the desired connection diagram can still be included in the draft NRD. Check the regional pages for the latest news regarding the various regions.
The following also applies:
- including a connection set-up in parallel to the construction of the national hydrogen network is only possible if this does not pose any risk to fulfilling the schedule as set out in the roll-out plan;
- attaching a connection pipe remains possible after construction of a new hydrogen pipeline or conversion of an existing natural gas pipeline.
What if the project procedure is at such an advanced stage that a connection set-up can no longer be included?
In that case, it will be determined whether a separate permit process can be followed in addition to the project procedure that is already ongoing or completed, to maximise the chances of being able to construct it at the same time as the hydrogen network’s main pipeline.
Who is responsible for starting up a parallel procedure for an all-in-one permit for physical aspects if necessary?
A parallel procedure relates to a request for a separate permit in addition to the ongoing or completed project procedure. If a VSA is concluded, Hynetwork will initiate this permit procedure.
Which party eventually issues an all-in-one permit for physical aspects for a connection set-up?
The municipality in question issues the permit for connection set-ups.
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