EBN and Partners to Form Demolition Firm for North Sea Cleanup

State coffers face a staggering six to eight billion euro bill to clear away aging offshore installations, Duurzaamnieuws reported.

Roughly 150 oil and gas platforms dot the Dutch sector of the North Sea awaiting permanent removal. State-owned energy company EBN expects about 60 percent of these structures to face decommissioning over the coming decade.

Mining legislation and the Ospar Convention obligate operators to clear the seabed once production ceases. State Supervision of the Mines oversees the execution of this work alongside the Ministry of Climate and Green Growth.

The Rising Cost of Seabed Cleanup

EBN estimated the total cleanup price tag at 6 to 8 billion euros in its 2025 annual report. Meanwhile, ministry projections sit closer to about 4.5 billion euros for offshore structures alone.

That lower estimate assumes pipelines remain buried beneath the seabed after cleaning. Removing roughly 4,000 kilometers of active piping would add over 4 billion euros to the final tally.

Plugging underlying wells accounts for nearly half of all offshore expenses. EBN previously warned that sealing these subterranean shafts could run up to 60 percent higher than initial forecasts.

Taxpayers Shoulder the Bulk of the Burden

Public funds will ultimately cover the vast majority of these expenses. EBN holds a 40 percent stake in Dutch gas extraction ventures, shouldering a matching share of both profits and teardown liabilities.

Tax deductions allow private firms to offset a portion of their decommissioning outlays. This dual structure leaves taxpayers carrying an estimated 73 percent of the overall financial burden.

Consortium partners must supply financial guarantees to cover future removal costs. EBN reviewed these guarantees and set aside over 2.7 billion euros by the end of 2025.

Establishing a Dedicated Demolition Firm to Prevent Environmental Contamination

EBN and industry partners are establishing a dedicated demolition firm to streamline operations. This initiative builds upon Nexstep, the collaboration launched by the oil and gas sector in 2017 to coordinate platform removal.

Physical dismantling of retrieved structures occurs at specialized onshore yards, including Hoondert Services & Decommissioning in Nieuwdorp. Leaving these installations in place risks long-term environmental contamination from mercury, lead, asbestos, and radioactive materials.

Not every tower faces total destruction. Since 2023, EBN has collaborated with Stichting De Noordzee, Natuur & Milieu, Nexstep, and TenneT to evaluate leaving select underwater foundations intact.

Selected steel foundations may remain if they permanently benefit marine ecosystems. Other infrastructure risks repurposing, such as converting depleted gas reservoirs into CO2 storage facilities like the Porthos project.

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Alexandra Hartman Editor-in-Chief

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