EU Approves €998 Million Dutch Scheme for Renewable Hydrogen Production
Key Ideas
- The European Commission has approved a €998 million scheme by the Netherlands to support renewable hydrogen production, aligning with EU's Hydrogen Strategy and the Green Deal.
- The scheme aims to increase electrolysis capacity, with a target of 200 MW, and support production through a competitive bidding process with grants and premiums over 5 to 10 years.
- It will contribute to the Netherlands' goals of achieving 500 MW of electrolyser capacity by 2025 and 3-4 GW by 2030, and the EU's targets of installing 6 GW by 2024 and 40 GW by 2030.
- The scheme is expected to help avoid around 55 kilotons of CO2 emissions annually until 2030, in line with climate objectives of both the Netherlands and the EU.
The European Commission has given the green light to a €998 million Dutch plan aimed at supporting the production of renewable hydrogen. This scheme, in line with the EU Hydrogen Strategy and the European Green Deal, is designed to foster the development of renewable hydrogen. The initiative will also align with the REPowerEU Plan, seeking to reduce reliance on Russian fossil fuels and hasten the green transition. The Netherlands will utilize the funding to enhance electrolysis capacity, targeting a minimum of 200 MW. The scheme's financial aid will be distributed through a competitive bidding process, set to be finalized by 2024. The grants will consist of an upfront investment grant covering up to 80% of the investment costs, complemented by a variable premium spanning 5 to 10 years. Recipients of the aid will need to demonstrate adherence to EU's criteria for renewable fuels of non-biological origin. The scheme will bolster the Netherlands' drive to reach 500 MW of electrolyser capacity by 2025 and 3-4 GW by 2030, while also supporting the EU's ambition of installing 6 GW of renewable hydrogen electrolysers by 2024 and 40 GW by 2030. It is anticipated that this initiative will result in approximately 55 kilotons of CO2 emissions being avoided every year until 2030, thereby contributing significantly to the climate goals of both the Netherlands and the EU.