The European Commission has authorized a €998 million scheme from the Netherlands aimed at bolstering the production of renewable hydrogen. This initiative, falling under EU State aid regulations, aligns with the European Union's Hydrogen Strategy and Green Deal objectives.
The scheme is designed to support the development of at least 200 megawatts (MW) of electrolysis capacity. It will be implemented through a competitive bidding process, set to conclude in 2024. Projects must have a minimum capacity of 0.5 MW to be eligible. The aid will be provided as a direct grant, which includes an upfront investment grant of up to 80% of investment costs and a variable premium over a five to ten-year period. Recipients must adhere to EU standards for renewable fuels of non-biological origin, as outlined in the relevant delegated acts.
The Netherlands anticipates that this initiative will help meet its goal of achieving 500 MW of electrolyser capacity by 2025 and 3 to 4 gigawatts (GW) by 2030. It will also contribute to the EU's target of installing at least 6 GW of renewable hydrogen electrolysers by 2024 and 40 GW by 2030. The project is expected to prevent approximately 55 kilotons of CO2 emissions annually until 2030, aiding both national and EU climate goals.
The Commission evaluated the scheme under EU State aid regulations, specifically Article 107(3)(c) of the Treaty on the Functioning of the EU, and the 2022 Guidelines on State aid for climate, environmental protection, and energy. It determined that the scheme is both necessary and appropriate for advancing renewable hydrogen production, while also supporting key EU policies such as the European Green Deal and the REPowerEU Plan.
Margrethe Vestager, the EU executive vice president for competition policy, emphasized the significance of the scheme: “Developing renewable hydrogen production is a key aspect of EU's climate neutrality goal. This €998 million Dutch scheme will help scaling up the production of renewable hydrogen in the Netherlands by providing support to electrolysers projects of all sizes, while ensuring that any potential competition distortions are kept to the minimum.”
The Dutch scheme follows a similar initiative approved in July 2023, which focused on small-scale electrolysers with capacities up to 50 MW.
