Expensive gas ‘the moment for entrepreneurs to become more sustainable’, but how easy is that?

Zwang is an experienced entrepreneur who has been active in the energy market for more than twenty years. He keeps a close eye on this market. “Some sectors are really having a problem right now,” he says. “It’s going to be difficult unless you can make it more sustainable. Now is the time for that. With the current gas prices, every investment in sustainability will pay for itself within a few years.”

But these opportunities are not readily available within every sector. According to Zwang, this depends on the degree of energy consumption and the space available to make it more sustainable. In other words: whether there is anything that can be made more sustainable. This is easier in some sectors than others.

Bakeries and construction companies

“Take the bakeries,” says Zwang. There are 720 bakers in Noord-Holland, 19% of the total in the Netherlands, according to figures from CBS from 2021. Due to, among other things, the large electric ovens, the energy consumption there is extremely high, but there is almost no room for sustainability. “Due to the limited space, you only get 3 to 5 percent of the electricity requirement there with solar panels. That is very little,” Zwang says. “But they still have to do it!”

It is also becoming difficult to become more sustainable in construction. North Holland has more than 41 thousand construction companies, according to figures from BoldData. “In addition to the fact that a large part of it is still human labour, the rest is done by equipment that uses diesel,” explains Zwang.

There is still little construction equipment that works on electricity, so switching is simply not possible. “There’s a real shortage in the market there.”

Greenhouse horticulture and services

But sustainability is possible in some sectors in North Holland. North Holland has more than two thousand hectares of greenhouse horticulture. These companies are mainly located in three glasshouse horticulture areas in North Holland North. The areas Alton, Het Grootslag and Agriport A7 are known as the so-called glass triangle.

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“If I were a horticulturist now, I would look at how I could start working with colleagues on a heating network that does not depend on gas,” Zwang advises. An example that the energy consultant cites is geothermal energy. “Then I know that I can achieve a certain cost price in the next 10 to 15 years.”

Another major industry in North Holland is business services. This is an umbrella term for, among other things, consultancy firms, law firms and ICT companies – actually all commercial service providers. About 117 thousand companies in the province operate in this sector.

Because the energy costs are only a small percentage of the total costs, it is quite easy to make it more sustainable in this sector. “Like with a heat pump, to heat the office”, Zwang mentions. “They can also very well make the lease contracts for cars more sustainable by switching to electric cars.”

Future

The sectors where energy is a large part of the cost price will have to be creative and look for alternatives. “For example, bakers could look at the electricity market,” Zwang advises. “Now the bread is still baked at night so that there is fresh bread in the morning. But the prices vary per part of the day, so baking during the day can be cheaper. There is also something to be gained.”

An important note: although sustainability is a solution to compensate for high gas prices, the growing demand is also causing price increases. “You can already see that solar panels and heat pumps are already more expensive than a year and a half ago,” concludes Zwang. “Energy has just become a global game.”