Dutch taxpayers face a bill reaching 6 to 8 billion euros to dismantle aging North Sea energy infrastructure, according to state-owned energy company EBN, Duurzaamnieuws reported on Friday.
About 150 oil and gas platforms sit in the Dutch sector of the North Sea awaiting removal. EBN expects 60 percent of these installations to be dismantled over the next decade. Total cleanup costs for the Dutch part range between 6 and 8 billion euros, with taxpayers shouldering most of the financial burden. To curb expenses, EBN and industry partners are establishing a dedicated demolition company.
Mining laws and the Ospar Convention obligate companies to clear platforms after production ends. The Ministry of Climate and Green Growth oversees the work alongside State Supervision of Mines. In 2025, crews dismantled 3 platforms at sea and sealed 32 wells. Sealing underground wells accounts for roughly half of total offshore expenses. EBN warned that sealing operations can run up to 60 percent over budget.
Removing pipelines increases total offshore expenses
The Ministry estimates total offshore expenses at roughly 4,5 miljard euro, assuming that pipelines remain on the seabed after cleaning. Removing roughly 4,000 kilometers of pipelines would add more than 4 miljard euro to the total. Pipeline removal costs average one million euros per kilometer. EBN identifies changing policies on pipeline removal as a primary financial risk.
Across the entire North Sea, the European Commission estimated in 2021 that cleanup costs would exceed 30 miljard euro between 2020 and 2030. The United Kingdom accounts for 17 miljard euro of that estimate due to a higher concentration of installations. The Dutch share for that specific decade sits at approximately 2,6 miljard euro.
Taxpayers fund the majority of Dutch decommissioning through state ownership stakes and tax write-offs. EBN holds a 40 percent interest in Dutch gas production, meaning it shares 40 percent of profits and cleanup costs. Companies also deduct removal expenses under tax agreements. Consequently, the government bears an estimated 73 percent of total expenses, while operators cover the remainder.
Operators provide guarantees for cleanup costs and risks
Operators sharing a gas field must provide financial guarantees for future cleanup costs. EBN reviews these guarantees annually. By the end of 2025, EBN set aside more than 2,7 miljard euro for its own share of the work. However, EBN acknowledges that reserves might fall short if projects exceed budgets.
Abandoned platforms carry environmental risks including mercury, lead, asbestos, and radioactive materials. Dismantling requires specialized onshore facilities such as Hoondert Services & Decommissioning in Nieuwdorp, Zeeland. New initiatives also explore leaving certain platform foundations in place to support marine life under strict conditions, or repurposing infrastructure for hydrogen and carbon dioxide storage like the Porthos project.
Why pipelines drive high cleanup costs
Why do pipelines make up such a large part of the budget?
The Dutch sector contains about 4,000 kilometers of pipelines on the seabed. Removing them costs roughly one million euros per kilometer, adding more than 4 miljard euro if authorities mandate complete removal instead of safe in-situ abandonment.
How does the government fund 73 percent of the cleanup?
State-owned EBN holds a 40 percent stake in Dutch gas extraction, meaning it pays 40 percent of the dismantling costs directly. Operators also deduct remaining expenses through specific tax agreements, shifting the overall burden largely to taxpayers.
What role does Hoondert Services play in decommissioning?
Hoondert Services & Decommissioning in Nieuwdorp, Zeeland, operates as one of the few permitted yards in the Netherlands equipped to dismantle hazardous materials brought ashore from offshore platforms.