Provide a €998 million aid scheme to support the electrolysis projects that produce renewable hydrogen
20 Aug 2024
On 28 July 2024, the European Commission approved a €998 million State aid scheme by the Netherlands to support renewable hydrogen production. The initiative seeks to enhance the Netherlands' electrolysis capacity by financing at least 200 MW of renewable hydrogen projects through a competitive bidding process based on cost-effectiveness (subsidy per MW). The aid includes upfront investment grants covering up to 80 per cent of costs, as well as variable premiums disbursed over 5 to 10 years. The operational subsidy is calculated as the difference between a strike price and market revenues, capped at €9 per kilogram of hydrogen.
Eligible projects must adhere to European Union renewable hydrogen criteria and aim to achieve a capacity of 500 MW by 2025, scaling up to 3–4 GW by 2030. This scheme aligns with the EU Hydrogen Strategy, the European Green Deal, and the REPowerEU Plan, and aims to reduce reliance on fossil fuels and accelerate the green transition.
-
Type:
-
Promotion and facilitation (Investment incentives)
-
Industry:
-
Not industry specific (SDG)
-
Manufacturing
-
Services (Electricity, gas, steam and air conditioning supply, Transportation and storage)
-
Sources:
