We have identified a number of risks to the viability of our pilot project In our economic assessment we include realistic scenario's for all of the following challenges:
Our society wants to get rid of any form of fossil energy generation. The need for gas as the most environmentally friendly fossil fuel for the transition period, requires a well-considered attitude in the social debate. The resistance to potentially visible installations is also a factor that we have to take into account.
Our climate-neutral offshore power plant is more costly than conventional offshore gas platforms or onshore gas-fired power plants. In addition, it takes a relatively long time before you get return on your investment. That requires a long term breath for investors. On the other hand, the payback period is shorter than that of wind farms.
Circular Energy is not dependent on future gas prices but on electricity prices. These can rise and fall. Thanks to our 'peak shaving' strategy, whereby we mainly produce at the time of a limited supply of wind farms, we realize a price that is above market average.
For the transport of electricity, we are partly dependent on the construction of infrastructure for wind farms on the North Sea. We do not control the pace at which this takes place.
Prices for CO₂ emissions within the ETS system can rise and fall. A high CO₂ price is in favor of Circular Energy.