Program aimed at increasing the Netherlands’ production of green fuel
The €998 million Dutch program to boost renewable hydrogen production has received approval from the European Commission.
The measure, which falls under EU State aid regulations, intends to support the advancement of renewable hydrogen production in accordance with the goals of the European Green Deal and the EU Hydrogen Strategy. The plan will also help the REPowerEU Plan’s goals of accelerating the green transition and lowering reliance on Russian fossil fuels.
The Dutch project will finance the development of a minimum of 200 MW of electrolysis capacity, and funding will be given out following a competitive bidding process that is anticipated to be completed in 2024. Projects with a minimum 0.5MW capacity are eligible to bid.
The assistance will come in the form of a direct grant that combines a variable premium paid over a five- to ten-year period with an upfront investment grant equal to up to 80% of the investment costs. Recipients will need to demonstrate that they have complied with the EU’s requirements for producing renewable fuels that are not biological in origin, as outlined in the delegated acts on renewable hydrogen.
The plan will help the Netherlands reach its goals of having 3GW–4GW of electrolyser capacity by 2030 and 500MW by 2025.
Additionally, it will help the EU achieve its goals of installing 40GW or more of renewable hydrogen electrolysers by 2030 and at least 6GW by 2024. The Netherlands anticipates that the program will help the nation and the EU meet their climate targets by preventing the equivalent of about 55 kilotons of CO2 annually through 2030.
The EU State Aid Regulations, specifically Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits Member States to encourage the growth of specific economic activities under specific circumstances, and the 2022 Guidelines on State Aid for Climate, Environmental Protection, and Energy, were examined by the Commission in order to evaluate the measure.
The Commission concluded that the plan is appropriate and necessary in particular to support the production of hydrogen from renewable sources. In addition, it advances the goals of important EU policy programs like the REPowerEU Plan, the EU Hydrogen Strategy, and the European Green Deal.
