European Commission approves $1.08bn Dutch aid scheme to support renewable hydrogen production

In Belgium, the European Commission has approved, under EU State aid rules, a $1.08 billion Dutch scheme to support the production of renewable hydrogen. The measure aims to contribute to the development of renewable hydrogen in line with the objectives of the EU Hydrogen Strategy and the European Green Deal. The scheme will also contribute to the objectives of the REPowerEU Plan to reduce dependence on Russian fossil fuels and accelerate the green transition. The Netherlands had notified the Commission of its intention to introduce this scheme to increase the country’s electrolysis capacity and support the production of renewable hydrogen. The entity noted that the scheme will support the construction of at least 200 MW of electrolysis capacity. The aid will be awarded through a competitive bidding process planned to be concluded in 2024. The tender will be open to projects with a capacity of at least 0.5 MW, it added. The aid will take the form of a direct grant combining an upfront investment grant up to 80% of the investment costs and a variable premium over a period of 5 to 10 years. The scheme will contribute to the Netherlands’s efforts to achieve 500 MW of electrolyzer capacity in 2025 and 3-4 GW by 2030. It will also support the EU’s ambitions to install at least 6 GW of renewable hydrogen electrolyzers by 2024, and at least 40 GW by 2030. “This Dutch scheme will help scaling up the production of renewable hydrogen in the Netherlands by providing support to electrolyzers projects of all size, while ensuring that any potential competition distortions are kept to the minimum,” said Margrethe Vestager, Executive Vice-President of the European Commission in charge of competition policy.

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