Netherlands Archives -

The investment for the future: Hydrogen

20 Jan 2021

Europe, Hydrogen, Japan, the Netherlands, TopDutch

A lot has changed since the 1800s, where during the industrial revolution, humanity produced carbon dioxide (CO2) and other gasses that could harm the climate. The main difference is that these effects used to be mainly local, not global as they are now. However, humanity needing energy sources to survive has not changed in these 200 years. How do we combat global warming? We could stop using electricity and gas altogether, but that is most unlikely. The solution to our problem is using green energy: Now is the time to invest in Hydrogen!

What and where is Hydrogen?

DUJAT describes Hydrogen as a fashionable energy vector due to its potential to support the transition to a decarbonized energy system required to meet the Paris Agreement’s emission reduction goals.

If there is one country doing Hydrogen justice, it is Japan. While Europe is slowly but surely starting with the Hydrogen process, Japan already produces Hydrogen domestically. Hydrogen is made from natural gas and oil and provides energy for residential buildings, experimental power plants and fuel cell vehicles. To show that Japan is the Hydrogen Nation, the First Hydrogen Olympic Games are an inspiration to follow. Now you might wonder, if Japan already uses Hydrogen to provide for heat networks, how is Europe doing at this moment?

TopDutch

Sander Oosterhof, Director of Foreign Direct Investment and Business Development of NV NOM, explained why the northern province of the Netherlands, Groningen, has always been crucial for energy production. The TopDutch region collects interconnected, purpose-driven and people-powered ecosystems. These ecosystems are committed to finding green and digital solutions for global economic, social and ecological changes. In other words: investment in sustainable mobility with electrification, hydrogen technologies and new infrastructures.

According to Catrinus Jepma, Professor emeritus of the University of Groningen & Senior Advisor of the New Energy Coalition, the Netherlands may not be Hydrogen’s leader but the project-planning leader. Currently, the Netherlands and Europe thrive on oil, gas, wind and sun. GasUnie provides windmill parks in the North-Sea and extensive gas infrastructure. However, the gas and oil period is ending, and what if there is not enough sun and wind to produce sufficient energy? How do you store and transport excess energy? To start answering these questions, the Paris Agreement has set up goals for 2030 and 2050 to implement Hydrogen as efficiently as possible. By 2050 the EU aims to be climate-neutral with net-zero greenhouse gas emissions.

Europe’s Valley of Death

Europe needs to have a completely green system; this seems impossible, but 20 years ago, renewable energy was only 10%, whereas it is now 30%. Every 15 years, the goal is to improve renewable energy levels. This includes the transition from blue Hydrogen (natural gas to H2) to green Hydrogen (green gas to H2).

For Europe to move forward, governments need to get through the ‘valley of death.’ Many discussions surround renewable energy, which is not necessarily bad, but crucial decisions need to be made soon. Governments need to support industry investment initiatives in producing, transport, storing, and implementing Hydrogen. This support needs to line up with surrounding countries by, for example, launching a supporting research agenda.

The Dutch have their hands full with the Paris Agreement goals (as the Dutch would say, “Er is werk aan de winkel/There is still a lot to do”), but there are many opportunities. René Schutte, Hydrogen Program Manager of GasUnie, explained how the Netherlands has many options for current and future Hydrogen projects. He calls this the TopDutch call to action.

The Dutch (gas) infrastructure

GasUnie provides access to its system to the public. With the decrease of natural gas and the increase of green gas, CO2 needs to be reduced upfront. What the future holds can be seen in the image above:

The Hydrogen infrastructure adjoining the natural gas/biogas infrastructure
The increase in green gas production
The windmill parks providing power-to-gas
The storage and transport of CO2
The industry cluster and heat network interconnected with the points above

“I want to invest in Hydrogen projects. What does that look like?”

There is much scaling up to do to increase renewable energy. Current phased roll-outs are implemented with a programmatic approach. These roll-outs ask for a lot of cooperation and funding between governments and industries. Luckily the interest in this Hydrogen project grows. For example, at this moment, the New Energy Coalition is working on HEAVENN: a Hydrogen Valley. International roll-out programs like these are crucial for the continuous development of Hydrogen in Europe.

What now?

Future investments make sure that not only industries but the entire world can continue to grow. We need to continue to think critically about our innovation methods. What are our long-term goals; how do our actions of today impact our future? Are you wondering how the future of your company unfolds? We would love to talk to you about it. In case you and your company are considering investments in Hydrogen, do not hesitate to contact NV NOM, the University of Groningen and/or GasUnie. Let’s go global; let’s go TopDutch!

Sources:

DUJAT – NV NOM – University of Groningen – GasUnie – the Paris Agreement – Japanese Olympic Committee

Press Conferences in Japan and the Netherlands: Different news, different actions

28 Dec 2020

Current news, Japan, Netherlands

COVID-19, Japan, press conference, the Netherlands

A press conference can help see the impact the coronavirus has and how each country handles it. The Dutch government and the government of Japan both have stated their significant concerns on the critical situation of the rise of corona cases. You might wonder, “Then the situation in Japan must be just as critical as in the Netherlands.” Yes and no.

Whereas in the Netherlands, the current total cases are around 762.985, Japan has about 221.412 cases¹. If you would show these numbers to a Dutch person, they will most likely react confused to the Japanese’s concerns since these numbers are less than those of the Netherlands. Perhaps it has to do with Japan’s collective culture, while the Dutch culture is significantly individualistic. Or has it to do with actively preventing the infections of the coronavirus? The density level in Japanese cities is more significant than in Dutch towns; thus, a domino-effect could happen without the right actions. Let’s take a closer look at the press conferences earlier this December. Who is speaking, and what are they saying?

¹These numbers are based on the data from HU CSSE COVID-19 Data on 28/12/2020.

The press conference in Japan: Support & Vaccination

On the 11^th of December, 2020, at 2:53 P.M., Tamura Norihisa (田村憲久) the Ministry of Health, Labour and Welfare (厚生労働省), held a press conference. During the conference, he addressed various concerns for those who find it difficult to get by during the year-end and New Year holidays. Norihisa addressed the vaccination process in Japan, as well.

The government requests local bodies to establish a system by making preparations and arrangements to open temporary contact points and secure locations for temporary lodging during the end of 2020 and 2021. In addition, the Hello Work public employment offices are setting up a system where advisers are on duty to listen to individual circumstances. A prime example of their work is providing support to those who have no place to live due to becoming unemployed during the pandemic.

Norihisa addressed the vaccines from AstraZeneca as the second point of the press conference. The Japanese government has closed an official agreement with AstraZeneca, which will supply 120 million vaccinations for Japan. During the first quarter of 2021, 30 million vaccinations will be provided. Regarding the vaccines, the Health and Welfare Science Council met on the 10^th of December to study the system for administering and distributing the vaccines in each local municipality. They want to ensure that the vaccination process goes as smoothly as possible.

Financial help in Japan

Regarding the Special Emergency Petty Cash Funds, the government has extended the deadline for applications following the economic measures. This deadline used to be the end of December 2020, but will now be the end of March 2021. In addition, the maximum payment period of the Cash Payment for Securing Living Quarters will be extended from the current nine months to twelve months. Single-parent households will receive a re-payment of extraordinary special benefits as well. Click here to read more about the financial arrangements (in English and Japanese).

Press conference in the Netherlands: Lockdown

On the 14^th of December, 2020, at 7 P.M., the Netherlands’ Prime-Minister, Mark Rutte, held a press conference. This press conference was more a speech to the people since he announced a strict lockdown to prevent more coronavirus infections. The number of corona infections is increasing, with many new cases added every day. The Netherlands is in lockdown from the 15^th of December 2020, lasting until the 19^th of January 2021. Whereas during the press conference of Norihisa, the only background noises you could hear were the camera shutters, the background noises during Rutte’s speech were protestors.

Rutte addressed the elephant in the room: this Christmas will be gloomy. From the 16^th of December 2020 to the 18^th of January 2021, online education will become the norm from primary education to universities. There are exceptions for practical training and personal guidance for students with special needs. Childcare is closed as well, with an exception for parents with vital professions. Meanwhile, the government strongly advises everyone to work at home, unless it is not possible. Only essential shops will remain open, such as supermarkets, financial and government organizations. Other shops and restaurants can only make use of take-away and pick-up services.

Rutte hopes that the vaccination process can start at the beginning of the next year. He calls this process the hope for 2021.

Financial help in the Netherlands

The ministry is releasing a new substantial support package, based on the volume of loss. Subsidies can be applied for from the 15^th of December. The higher the loss, the higher the financial assistance. On the governmental website (Rijksoverheid), companies can (re-)apply for support and recovery packages with temporary financial arrangements, social packages and investment measures. The Chamber of Commerce and the employers’ organization VNO-NCW/MKB Nederland have created aid packages as well. Read more about financial arrangements here (in Dutch).

We understand that the current happenings around the coronavirus can affect your business. In case you are considering expanding your business to Japan or the Netherlands, but wonder if this is the right moment, and if not, what preparations for the future you can do: please talk to us. We wish to help you in any means possible.

Sources:

Google / JHU CSSE COVID-19 Date – Ministry of Health Labour and Welfare – Rijksdienst voor Ondernemend Nederland – Rijksoverheid

Country by Country Reporting

26 Jan 2017

BEPS, Country by Country Reporting, Current news, Netherlands, Tax Planning

New Challenges for Companies Active in International Markets

Country by Country Reporting (in short CbCR) is part of the action plan of the OECD and G20 Member States to reduce base erosion and profit shifting (BEPS) in multinational corporations. The draft aims to counteract multinational companies’ skillful ability to take advantage of different tax systems. In the future, companies should pay their taxes in the countries in which the added value is generated. For this purpose, profits, tax payments, and entrepreneurial activities should be prospectively documented for each country.

Companies with Annual Turnover of € 750 Million and Above

In principle, Country by Country Reporting applies to multinational corporations with an annual turnover of € 750 million and above if a company’s consolidated report includes at least one foreign company or a foreign permanent establishment. All documentation must be drawn up and disclosed on an annual basis. Each national tax authority may then exchange the data with other foreign tax authorities.

Country by Country Reporting as Part of Transfer Pricing Documentation

Country by Country Reporting is included in Action 13 of the OECD’s BEPS initiative, which requires that transfer pricing documentation in the future is conducted based on a three-tiered structure. This means that the requirements for transfer pricing documentation developed almost 20 years ago have been completely revised. In the future, the documentation requirements should be completed based on this three-tiered approach: a master file, company-specific documentation in the local file, as well as country-specific reporting in the form of Country by Country Reporting.

Criticism from Different Viewpoints

While NGOs such as Tax Justice Network, Oxfam or Tax Research UK say the new regulations are not consistent enough, the OECD’s Business and Industry Advisory Committee (BIAC), which represents the interests of the industry, warns of significant administrative overhead and increased costs incurred by companies.

New Compliance Requirements

The guidelines for Country by Country Reporting have already been ratified by most European countries, the United States and Canada. Given these developments, the major accounting firms warn their clients of the risk of double taxation and complex compliance requirements. Therefore, companies should study the new regulations at an early stage and adapt their operations to them.

The Netherlands: An Ideal Location for Companies

23 Jan 2017

Current news, Netherlands, Tax Planning

How IKEA, Starbucks and the Rolling Stones Benefit from the Netherlands as a Financial Center

According to the Dutch newspaper Financieel Dagblad, the Netherlands is the financial hub of the world. Many multinational companies such as IKEA and Starbucks call this small country on the North Sea home.

Tax Conventions with over 80 Countries

An open trading culture, great level of internationalism and hospitality characterize the interactions in this traditional trading nation. The Netherlands offers excellent business infrastructure, optimal tax conditions for foreign companies and tax conventions with over 80 countries. Multinational companies also have the opportunity to reach separate, confidential agreements with the Dutch Tax Office.

Low Taxes on Interest, Dividends, and Intellectual Property

The Dutch state collects little or even no taxes on income such as dividends and interest that companies have generated abroad. The same applies for patents, trademarks and licensing rights. These tax conditions allow multinationals to save a significant amount of money.

Tax Planning in the Netherlands

This is not tax evasion, but rather legal tax planning and is used by more than 12,000 foreign companies in the Netherlands. Even the share of German companies is growing steadily. More than 800 German companies have subsidiaries in its neighboring country and benefit from the Netherlands as a financial center.