Molecule transmission solutions for today and tomorrow

Pipelines in Belgium

Background

Energy systems worldwide are going through a massive period of change – and it is leaving them more heterogenous than ever before, as technologies diversify and transitions progress at different paces across countries.

Against this backdrop, flexible energy sources that offer energy when and where it is needed, at affordable cost, are more important than ever. Natural gas and other molecules that can travel by land and sea and used by industry and households have a crucial role to play: On average, around a quarter of Europe’s energy supply today still comes from gaseous fuels.¹

Transmission infrastructure like pipelines that bring these molecules from one place to another as well as import terminals and storage facilities make this flexibility possible. Operating around 28,000 kilometers of pipelines alongside a fleet of LNG terminals and large-scale natural gas storage facility, Fluxys S.A. is a central actor in this space, with headquarters in Belgium and active across Europe and beyond.

Action

To develop infrastructure aligned with future system needs, Fluxys is focusing part of its investments on hydrogen², carbon dioxide and other molecules. For its listed subsidiary, Fluxys Belgium, more than 85% of planned capital expenditure under its 2026–2035 indicative investment plan of over EUR 5.9 billion is allocated these areas, or the reduction of its own emissions.³

In Belgium, Fluxys was appointed the official hydrogen network operator in 2024, positioning the company as a key player for the emerging European hydrogen backbone. Several major multi-molecule pipeline projects, which could transport hydrogen or carbon dioxide, are already under development, such as the Zeebrugge–Brussels axis.

At the same time, through the subsidiary Fluxys c-grid, the company is developing carbon dioxide transport infrastructure in Antwerp, one of the largest ports in Europe, and was appointed carbon network operator for the regions Wallonia and Flanders. Alongside this leading position in its home market, Fluxys has several cross-border initiatives, including an agreement with OGE and Equinor to enable carbon dioxide transport from industrial emitters in Germany to permanent storage sites in the North Sea.⁴

To reduce the emissions of its existing natural gas infrastructure, Fluxys is implementing methane leakage detection and repair programs along its pipelines, and open-rack vaporizers, which use heat from seawater instead of fuel, to regasify LNG.

Outcome

By the 2030s, Fluxys aims to offer transport capacity of up to 30 terawatt hours of hydrogen and 30 million tonnes of carbon dioxide per year,⁵ potentially supporting the scale-up of low-carbon gaseous value chains. The exact volumes remain to be seen, as hydrogen markets are still in their early development. Nevertheless, Fluxys is already creating the link between new and existing molecule infrastructure, helping enable the energy transition while maintaining reliable and affordable energy supply.

Note: Case study for illustration purposes only. Holdings are subject to change, this does not constitute investment advice to buy or sell the presented securities.