The Dutch cooperative bank Rabobank will not lend money to companies involved in the extraction of shale gas, a spokesperson of the bank told Dutch newspaper Trouw on Monday.

The bank also said it would not provide loans to farmers who rent their land to gas extraction companies.

According to the spokesperson it is the bank's global policy not to get involved in fossil fuels as long as it is not clear what the risks and consequences could be.

Shale gas has become an increasingly important source of natural gas in the United States since the start of this century. Shale gas is extracted by pumping high quantities of chemicals, water and sand into dense shale rock formations in order to release gas that is then pumped to the surface. The industry has been criticized by environmental campaigners in the Netherlands and worldwide.

A first evaluation from Dutch research bureau TNO in 2009 confirmed high potential for shale gas in the Netherlands, although estimates were presented with strong uncertainties. Due to these strong uncertainties in gas-in-place estimates, opinion on the potential for shale gas in the Netherlands is divided.

The Ministry of Economic affairs is currently researching the impact of shale gas exploitation, and the results are expected in July. Endit

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