A $1.08bn Dutch hydrogen production scheme has been provided with state aid approval, after the European Commission recently agreed to it. The expectation of this facility, is that it will support the construction of an estimated 200MW of electrolysis capacity.

The plan around how this support will be provided, focuses on the idea of awarding it through a competitive bidding process and it is expected that this concept will be finalised in 2024 .Once open, any projects with a capacity of a minimum of 0.5MW will be able to enter. In order to enter, any applicants must be able prove that both the company and the project is complaint with the EU criteria, when it comes to the production of renewable fuels, in particular those of non-biological origin (RFNBOs). This rule reflects the rules written within the delegated acts of renewable hydrogen.

It has been made clear that the Dutch Government will provide direct grants, which are worth up to 80% of the upfront investment cost of projects. Furthermore, the government has also agreed to supply a variable premium over five to ten years.

European Commission Executive Vice-President, Margrethe Vestager, commented, “Developing renewable hydrogen production is a key aspect of EU’s climate neutrality goal. This €998m Dutch scheme will help scale up the production of renewable hydrogen in the Netherlands by providing support to electrolyser projects of all sizes, while ensuring that any potential competition distortion is kept to the minimum.”