The Netherlands makes €9B pledge to ignite hydrogen revolution

Hydrogen

The Netherlands – The Dutch government, led by Ministers Micky Adriaansens and Rob Jetten, is doubling down on its commitment to hydrogen as a key element in its climate and energy strategy.

With the aim of promoting the use of renewable hydrogen, the cabinet has allocated €9 billion through the Climate Fund and plans to implement subsidies and obligations starting from 2026.

One of the government’s primary focuses is on the import of hydrogen, as evidenced by recent bilateral agreements to establish hydrogen corridors. However, equal emphasis is being placed on supporting domestic supply and demand. The Climate Agreement stipulates that the Netherlands should have a minimum of 4 gigawatts of electrolysis capacity by 2030, with the goal of doubling it by 2032. The feasibility of this ambitious plan depends on the expansion of offshore wind energy, the development of energy infrastructure, and the electricity demand from key sectors such as industry.

To accelerate the supply of renewable hydrogen, the government will provide additional subsidies. In 2024 alone, an extra €1 billion will be allocated, with an additional €3.9 billion earmarked for scaling up renewable hydrogen in subsequent years. The Main Energy Structure Program will play a crucial role in designating suitable locations for electrolysers across the country. Furthermore, the government plans to grant a substantial €300 million subsidy under the H2Global initiative to bolster hydrogen import to Northwest Europe. Simultaneously, efforts are underway to develop the necessary infrastructure for hydrogen transport and storage.

Stimulating renewable hydrogen

In a bid to stimulate the use of renewable hydrogen in industry and transport, the Dutch government will combine subsidies with obligations. As the European Union works towards binding hydrogen targets, the government intends to incentivize industries to shift towards renewable hydrogen sources. Additionally, the government is exploring the introduction of subsidies to assist hydrogen users with the costs of retrofitting installations or adopting renewable hydrogen.

The government’s plans have been communicated to the House of Representatives in a letter. Detailed proposals for subsidies and obligations from the Climate Fund will be presented in the autumn, following an external study and multiple market consultations scheduled for the coming months.

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