#herewego
Annual Financial Report 2023
shaping together
a bright energy | |
Annual Financial Report 2023 | |
future | Fluxys |
#herewego
The energy transition is a massive undertaking for society as a whole and we are going all out to help speed up this process. Our infrastructure
is essential to making the
transition happen.
2023 was a turning point. We went from plans and projections to breaking ground on new projects. With infrastructure for security of supply that we can sustainably deploy tomorrow for the benefit of the carbon-neutral society. And this is just the beginning. We have set off, powered by the vibrant strength and forward-looking commitment of all our employees.
This is who we are
100 %
focus on speeding up the energy transition
independent infrastructure group headquartered in Belgium
active in Europe, Latin America and the Middle East
Europe
Latin America
What we're doing to speed up the energy transition
Transmission | Storage | Terminalling | ||||
Natural gas | Natural gas | Natural gas | ||||
& biomethane | & biomethane | & biomethane | ||||
Hydrogen | Hydrogen | Hydrogen | ||||
CO2 | CO2 | |||||
Middle East
Our ambition
For the market
30x30x30
By 2030
provide capacity for annual transport: 30 TWh of hydrogen and 30 million tonnes of CO2
In our own activities
Be climate-neutral | net | |
in 2050 | 0 | |
2050 |
Our talents | Our contribution to prosperity |
Our investments in infrastructure
1,359 | 20/80 |
Employees | Ratio |
women/men | |
151 | 47 |
New | Number of employees |
employees | taking on a new role |
within the company |
Society | |||
(taxes) | |||
Financial | 101 | ||
institutions | |||
(interest) | 81 | 2023 | Suppliers |
342 | |||
EUR 951 m | |||
Share- | 240 | in added | |
value | |||
holders | |||
(dividend) | |||
187 | |||
Personnel |
EUR 300 m
# herewego
Contents
Looking to the future | 2 |
Our profile: a purpose-driven company | 10 |
Why, what and how: our strategic framework | 12 |
Our context | 16 |
Where we operate | 18 |
How we are speeding up the energy transition | 20 |
A low-carbon, reliable and affordable energy | 24 |
system: how? | |
Our sustainability path: fluxtainable | 26 |
Our people are the driving force | 28 |
Our digital transformation path | 32 |
Our structure and governance | 34 |
Our risk management | 38 |
Our financials in a nutshell | 42 |
Legal and regulatory framework | 46 |
Secure | 50 |
Supporting security of supply 24/7 | 52 |
Expand | 58 |
All-in for multi-molecule infrastructure | 60 |
to help decarbonise Europe | |
Major steps forward in North-West Europe | 62 |
Connect | 68 |
Importing green hydrogen from overseas | 70 |
Our ESG compass | 72 |
Double Materiality Assessment | 76 |
Financial situation | 80 |
Statutory auditor's report and declaration | 221 |
by responsible persons | |
Glossary | 227 |
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Fluxys | Annual Financial Report 2023 | Looking to the future
# herewego
# herewego
Looking
to the future
2 | 3 |
Fluxys | Annual Financial Report 2023 | Looking to the future
#herewego
# herewego
Breaking ground
to make the transition tangible
Before we look ahead, what did Fluxys stand for in 2023?
Pascal De Buck We broke ground on projects showing what Fluxys stands for in the energy transition. In Belgium, the new pipeline along the Zeebrugge-Brussels corridor was built and is now in use. And in Germany, work is well underway to upgrade the TENP pipeline. Together with other investments, these two pipelines bolster the security of supply of natural gas today and the infrastructure is ready to be used in the hydrogen networks of tomorrow. We're here to offer society security of supply while speeding up the green transition.
Andries Gryffroy We have set off. Industrially, we've taken the first big steps towards multi- molecule infrastructure for a carbon-neutral future. Via our stake in German transmission system operator Open Grid Europe, we've created a bridge to geographically complementary hydrogen and CO2 networks. And our partnership in Omani transmission system operator OQGN gives us
a foothold in a country with an extraordinary potential for exporting hydrogen to Europe. At the same time, we're continuing to move full steam ahead at the pace of industry. For numerous companies, switching to hydrogen or CO2 capture is the only way forward if they want to continue anchoring their business and employment locally.
Milestones 2023
Andries Gryffroy | Pascal De Buck |
Chairman of the Board of Directors | Managing Director and CEO |
Supporting security of supply 24/7
Throughout the year, our teams across Europe made every effort to ensure security of supply. The geopolitical situation resulting from the war in Ukraine has profoundly changed the dynamics of gas markets and the direction of flows in Europe.
The Belgian grid once again confirmed its role as an energy hub for Europe with the transit of large quantities to the Netherlands and Germany. We brought in plenty of flows from Norway, from the UK and through our LNG terminals. In Germany we imported significant quantities from Belgium and the Netherlands, from the new floating LNG terminals in the north and also from and to Switzerland. Desfa in Greece provided substantial transit to Bulgaria and TAP continued to supply large volumes to Europe.
Partner in the largest German transmission system operator
In 2023, Fluxys became a 24% partner in Open Grid Europe (OGE). The partnership aligns perfectly with our strategy. OGE is the largest German
transmission system operator and, like Fluxys, is a pioneer in the field of hydrogen and CO2 infrastructure. With highly complementary hydrogen and CO2 infrastructure, we are speeding up the development of cross-border routes for hydrogen and CO2 between Belgium and Germany.
4 | Contents | Looking to the future | Our profile | Secure | Expand | Connect | Our ESG compass | Financial situation | 5 |
Fluxys | Annual Financial Report 2023 | Looking to the future
# herewego
We're here to offer society security of supply while speeding up the green transition.
Pascal De Buck
Managing Director and CEO
Is industry ready for this transition?
Pascal De Buck Decarbonisation is a major economic challenge for industry. We offer an answer to this challenge because we operate internationally and because we're particularly well positioned between the North Sea and the large industrial valleys in North-West Europe. We're on the path between overseas imports of low-carbon molecules and consumers, and in the opposite direction, between captured CO2 from industry and safe storage sites in the North Sea. This enables us to attract large volumes and factor economies of scale into the costs of our services. We're on track to become the hydrogen and CO2 hub of choice for industry in Belgium and North-West Europe.
What challenges lie ahead?
Pascal De Buck We absolutely need an integrated approach to the energy system as a whole because making the transition to net- zero is a threefold challenge. We must ensure a carbon-neutral energy mix while households and businesses need to have energy at all times - all at the lowest possible cost to society. This is only possible by looking at and planning everything holistically. Energy efficiency must improve, we need more green electricity, we need more green and low-carbon molecules and we must ensure that captured CO2 can be reused or stored. We must make all these solutions work together seamlessly like a Swiss watch for the benefit of all consumers.
Andries Gryffroy Efficient investing requires a long-term approach. In developing hydrogen and CO2 infrastructure, we work closely with the market. At the same time, looking further ahead is key: to be cost-effective for society in the long run, we must build the right size infrastructure today for the volumes that will come later. So it's important to find mechanisms together with the public authorities to limit the risks of initial investments.
Additional transmission capacity ready for hydrogen
In Belgium we reinforced the Zeebrugge-Brussels corridor with an additional pipeline to carry more natural gas inland from Zeebrugge and in Germany
we started renewing part of the TENP pipeline. Moreover, the new infrastructure has been designed to carry hydrogen as soon as the market is ready for it. We are bolstering security of supply and at the same time this is our first concrete step in speeding up the energy transition.
Range of export solutions for CO2
We are working closely with partners on infrastructure that offers industry a solution for carrying captured CO2 to safe and permanent storage sites in the North Sea. With Equinor we are investigating a subsea pipeline between Zeebrugge
and storage sites in Norwegian waters. At the ports of Dunkirk, Antwerp and Ghent we are working on facilities for CO2 export by ship to storage sites in the North Sea.
Strong partners for large-scale decarbonisation
We aim to offer European industry large-scale solutions for decarbonisation. In Belgium we are continuing to build a multi-molecule hub to carry hydrogen and CO2. And we are joining forces with various partners to make maximum use of Belgium's central location for the large-scale decarbonisation of industry in North-West
Europe. We explore cross-border hydrogen connections with Open Grid Europe in Germany and Hynetwork Services in
the Netherlands. We are also working with National Gas in the UK in the context of the energy transition. And cross-border CO2 routes we are exploring with Open Grid Europe and Wintershall Dea in Germany.
6 | Contents | Looking to the future | Our profile | Secure | Expand | Connect | Our ESG compass | Financial situation | 7 |
Fluxys | Annual Financial Report 2023 | Looking to the future
What does sustainable development look like for Fluxys?
Andries Gryffroy With our investment plans for hydrogen and CO2 infrastructure, we're developing solutions for the large-scale decarbonisation that society needs. The ESG approach we further deepened together with our stakeholders in 2023 gives us direction. It is our compass for developing our business activities sustainably in a long-term perspective for all of
Efficient investmentour stakeholders. requires a long-term
approach.
Andries Gryffroy
Chairman of the
Board of Directors
# herewego
System operator candidates in Belgium: Fluxys hydrogen and Fluxys c-grid
In Belgium, the federal Hydrogen Act, passed in July, regulates the appointment of the Belgian hydrogen transmission network operator. In line with the Hydrogen Act, Fluxys Belgium set up subsidiary Fluxys hydrogen, which is a candidate for
serving as Belgian hydrogen network operator. The federal government is expected to appoint the network operator in the first months of 2024. The regions are setting up a regulatory framework for CO2 transmission activities. In anticipation of this, together with Pipelink, Socofe and SFPIM, we have founded the subsidiary Fluxys c-grid, a separate company that is ready to take part in the planning, development, and operation of the CO2 transmission infrastructure in Belgium.
Partner in Omani transmission system operator
A robust hydrogen market in Belgium and Europe is a value chain with a wide range of sources, both close
by and overseas. In that perspective, we have partnered with OQGN, Oman's state- owned transmission system operator. The country has the ambition and the assets to become a leading export hub for renewable hydrogen and OQGN, like Fluxys, is a pioneer in decarbonisation projects. Together we are exploring strategic cooperation in the development of hydrogen and CO2 infrastructure in Oman.
Tapping the
North Sea's energy potential
The North Sea countries want to boost their combined offshore wind power generating capacity to 300 GW by 2050 with a view to making the North Sea the largest green energy plant in Europe. In order to carry maximum green hydrogen from North Sea wind ashore, we teamed up with the other
major gas grid operators at the North Sea Summit in Ostend to develop, together with electricity grid operators, the best infrastructure to ensure that not a single puff of wind goes to waste in the North Sea.
8 | Contents | Looking to the future | Our profile | Secure | Expand | Connect | Our ESG compass | Financial situation | 9 |
Fluxys | Annual Financial Report 2023 | Our profile
# herewego
# herewego
Our profile
a purpose-driven company
11
Fluxys | Annual Financial Report 2023 | Our profile
Why, what and how: our strategic framework
Our purpose: why we matter
As a key infrastructure partner, we are building a sustainable and cleaner energy future. That is our purpose. With our terminalling, transmission and storage infrastructure for different molecules, we bring energy where it is needed - today and tomorrow.
together
# herewego
Shaping together
a bright energy
future
bright
speed up | WHAT | |
green energy | ||
transition | ||
HOW | ||
connect | ||
expand | ||
secure | ||
WHY | HOW | |
shaping together | respect | |
a bright energy | open | |
future | reliable |
HOW
fluxtainable
The energy ecosystem is complex and the demand for energy as a driver of human progress combined with a global need to make energy more sustainable is a challenge that requires everyone's commitment. Redesigning the energy system will not be easy, yet it can be done if we work together. Together refers to all our stakeholders: our employees, shareholders, industrial partners, customers, the general public and all actors in the energy system. At Fluxys we firmly believe in this collaboration.
What we want to achieve: our ambition
As a key infrastructure partner, we want to accelerate the energy transition with infrastructure for different mol- ecules. We aim to offer customers substantial capacity for supplying hydrogen and carrying away CO2 by 2030.
bright - Our infrastructure, with its storage capacity and capacity to handle molecules for a low-carbon future such as hydrogen and CO2, will play a major role in the transition to a bright energy future for all.
future
The word future entails responsibility. With our unique assets as an infrastructure company, we owe it to ourselves to contribute to a greener energy future for generations to come.
by 2030, we aim to offer our
customers transport capacity for
30 TWh of hydrogen and
30 million tonnes of CO2 per year
12 | Contents | Looking to the future | Our profile | Secure | Expand | Connect | Our ESG compass | Financial situation | 13 |
Fluxys | Annual Financial Report 2023 | Our profile
How we do it: 3 pillars
# herewego
2
an inspiring
vision of
sustainability
Fluxtainable is our ESG compass (Environment - Social - Governance).
How do we ensure we develop our activities sustainably while taking a long-term view for us and for all our stakeholders? We are moving forward in five areas on our sustainability path.
respect
We value the uniqueness of
every individual.
We look out for each other, keeping
our employees safe and well.
We make our decisions consciously for the environment, communities and future generations.
open
We foster teamwork and open
communication to create a workplace where different perspectives are embraced, and employees are empowered to shape the future.
With an open mind, we take action,
we adapt swiftly, and we seize
opportunities with
- can-doattitude to drive the energy transition.
moving | green | safe | people | responsible |
we accelerate the | we become a net | we keep high | we encourage | we conduct |
energy transition | zero company and | safety standards | diversity, talent | our business in |
with multi-molecule | we preserve the | in an evolving | development | a responsible |
infrastructure, today | natural capital | business | and employee | |
and tomorrow | engagement |
1
our values
3
- clear strategy
reliable
We are committed to earning and building trust in all our partnerships.
We go above and beyond for our
customers and partners.
We are in it for the long term and society can count on us for affordable, sustainable and safe infrastructures.
secure
contribute to versterken
a sustainable
and securebijdragen tot een duurzame en
energy supplybetrouwbaregroene
energiebevoorradingtransitie
green transitionde es en iële
inf astructuurpartner om de energietransitie te versnellen
expand
develop, scale-upverbreden
and operate
infrastructuurmulti-voormolecule verschillende molecules ontwikkelen,infrastructureuitbreiden
en exploiteren
connectverbi den
waardeketens voor koolstofarme energie createcr ërenlowvia-partnerschappencarbonenergy
value chains through partnerships
14 | Contents | Looking to the future | Our profile | Secure | Expand | Connect | Our ESG compass | Financial situation | 15 |
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Fluxys SA published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 09:07:01 UTC.