Cabinet invests heavily in scaling up hydrogen | News item

News item | 23-06-2023 | 16:58

The Netherlands and Europe have major hydrogen ambitions to achieve a climate-neutral energy system and a sustainable industry. According to ministers Micky Adriaansens (Economic Affairs and Climate) and Rob Jetten (Climate and Energy), these ambitions call for a dynamic policy aimed at both the supply and demand side of hydrogen. To scale up the hydrogen market, the cabinet is subsidizing electrolysis and wants to encourage the industry with subsidies and an obligation to use more and more renewable hydrogen from 2026. € 9 billion has been reserved for this in the Climate Fund.

In addition to active policy aimed at the import of hydrogen, the government also wants to stimulate supply and demand in the Netherlands. It has been agreed in the Climate Agreement that the Netherlands will have at least 4 gigawatts of electrolysis capacity (the process for making green hydrogen) by 2030. In addition, the Netherlands is aiming for an electrolysis capacity of 8 gigawatts in 2032. That feasibility will depend on the roll-out of offshore wind energy, the expansion of energy infrastructure and the demand for electricity from users such as industry.

As a first step, the government is focusing on increasing the supply of renewable hydrogen with various subsidies. In addition to the subsidies that already exist for electrolysis (such as SDE++ and IPCEI), the government will make an additional €1 billion available in 2024. For subsequent years, the government reserves € 3.9 billion for scaling up renewable hydrogen. The Program Main Energy Structure will ensure that places in the Netherlands are designated for electrolysers (hydrogen factories). By granting a €300 million subsidy under the H2Global initiative, the import of hydrogen to Northwest Europe will receive a major boost. The cabinet is also working on the necessary infrastructure for the transport and storage of hydrogen.

Minister Jetten (Climate and Energy): “We are strengthening our energy relations for the import of hydrogen, but we also want to significantly increase hydrogen production within the Netherlands. We are allocating a substantial amount for this, which is in line with the great ambitions that we as a country have for the development of hydrogen. Getting our CO2goals comes first, and hydrogen is indispensable for that.”

The use of hydrogen in industry and transport is stimulated through both subsidies and obligations. In anticipation of an agreement within the European Union on binding hydrogen targets, the government wants the industry to use more and more renewable hydrogen. The government also wants to make the investments necessary for the use of renewable hydrogen more attractive. That is why the ministry is exploring the introduction of subsidies for hydrogen users to cover the costs of converting installations or using renewable hydrogen.

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