Why I Am Speaking Out on Energy and Climate Policy

I’m temporarily stepping out of my Foodlog winter break because the draft energy and climate policy is too important to ignore. For those unfamiliar with me: I am a TU Delft graduate (Chemical Engineering), an innovator, and an entrepreneur based in Wageningen. Since 1990, I’ve been deeply engaged in topics such as the Club of Rome, sustainability, and energy. During my studies—back when Shell, McKinsey, and Unilever dominated the mindset—climate, CO2, and sustainability were already recurring themes. My peers at Delft were among the brightest technical minds in the Netherlands, rigorously trained to analyze numbers, mass and energy balances, perform rational spreadsheet analyses, and understand complex systems.

Although my primary focus today is food technology innovation, energy intersects significantly with this domain. My team and I have developed a deep understanding of the energy system, and I feel compelled to share some key insights here.

Why Speak Up Now?

My motivation is simple: to contribute numbers and facts to the ongoing discussions on Foodlog. I’m keenly aware that the climate debate encompasses far more than just data; it’s about inequality, communication, the future we envision, and the roles of small versus large players. Yet these critical issues are often thrown into a chaotic mix, resulting in noise, half-truths, and misplaced focus. The facts—the foundation for good decisions—are getting lost, and this is where I want to bring clarity.

The Dutch Energy Balance

Let’s start with the basics: energy consumption in the Netherlands. The data on our energy balance is well-documented. The Netherlands is a hub for gas and oil, but for clarity, we should exclude imports and exports and focus solely on domestic consumption. According to the IEA, the Netherlands imports and produces about 11,000 PJ of energy annually, of which we consume around 2,400 PJ domestically—roughly 22%.

If we aim to “go green,” we first need to define what that means. To me, greening means eliminating our dependence on fossil fuels: crude oil, natural gas, and coal. Discussions about “getting off gas” often miss the mark. They seem to conflate several ideas, such as “no more Groningen gas” or “no more natural gas use at all.” I understand the need to reduce extraction in Groningen and could support efforts to use less natural gas overall. However, blanket statements like “no gas” are simplistic, and the hype around hydrogen as an alternative often overlooks its inefficiencies.

CO2 Focus and Complexity

So far, I’ve deliberately avoided mentioning CO2 equivalents or climate change. Instead, I believe the central political question is straightforward:

“Do we, as a society, want to pursue sustainability and reduce our dependence on fossil fuels?”

If the answer is yes, the next question is: “Where can we achieve the greatest impact at the lowest cost?” This doesn’t need to be overly complex. Unfortunately, discussions often become muddled by framing everything in terms of CO2 tons and climate negotiations. This framing benefits multinationals while burdening citizens and farmers disproportionately.

Where Does Our Energy Come From?

The Netherlands consumes about 2,400 PJ of energy annually, primarily sourced from crude oil and natural gas (together accounting for around 1,800 PJ or 75%). Here’s how this energy is used:

• Industry, transport, and heating buildings: The bulk of energy consumption goes to these sectors.
• Electricity: Accounts for 370 PJ (~15%) but is largely generated using natural gas and coal. Generating this electricity actually requires double the energy, with the remainder lost as waste heat.
• Sustainable energy: Only 1–3% comes from wind and solar, with another 4% from biomass (which I view as unsustainable).

Globally, energy use breaks down roughly as follows:

• Heavy industry: ~20%
• Heating (buildings, hot water): ~16%
• Transport (cars, planes): ~20%
• Combustion heat losses: ~30%

In the Netherlands, industry exceeds the global average at ~25%, while heat losses are closer to 35%.

Greening Households: Costs and Challenges

Dutch households account for about 25% of total energy consumption. This includes:

• 26% natural gas (heating, hot water, cooking).
• 26% electricity (appliances, devices).
• 32% motor fuels (gasoline, diesel).

To green a household’s electricity use (~7% of national energy consumption), we would need 12–15 solar panels per home, costing €4,000–€6,000 each. Across all 7 million households, this amounts to €35 billion in CAPEX (€4.3 billion annually over 8 years).

However, greening household heating would require an additional 20–25 panels (€10,000 per household) plus a heat pump (~€10,000). This adds another €140 billion (€17.5 billion annually). Combined, the total cost is at least €175 billion—excluding electric cars or space limitations for solar panels.

Conclusion: The Real Challenge Lies with Industry

Fully greening households would cost €25,000 per home, totaling €175 billion. This effort would address only 17% of national energy use. The real challenge lies with businesses, which account for 75% of energy consumption.

Additionally, we ignore the vast quantities of waste heat from industry—around 30% of all energy use. Addressing this alone could make a significant difference.

So, how do we proceed?

• How do we fund €175 billion?
• Where do we place all the solar panels?
• What about electric vehicles?
• And how do we tackle the remaining 75% of energy use in industry?

These are the questions we need to address. The road ahead is daunting, but one thing is clear: we cannot overlook the systemic challenges posed by industrial energy use.

Until next time, when I’ll share graphs, tables, and further analysis.

Sincerely,
Wouter de Heij