Cabinet sets four priorities for the future of hydrogen
On January 16, 2025, the Dutch governmental committee debate on Hydrogen, green gas and other energy carriers took place. The debate discussed the steps and obstacles in the transition to sustainable energy carriers. Geerte de Jong, hydrogen chain expert at New Energy Coalition, reviewed the debate and explains the policy developments surrounding hydrogen.
The hydrogen market is developing more slowly than expected, mainly because not all the necessary preconditions, such as infrastructure and wind farms, are in place. This makes it more difficult to achieve the ambition of 4 gigawatts of electrolysis capacity by 2030. The exact consequences of this will be determined by the government in the spring, when there is more clarity about the infrastructure (via a new rollout plan), the supply (results of the OWE), and market demand.
The cabinet has set four priorities:
- Clear laws and regulations.
- Reliable construction and realisation of infrastructure.
- Tools to scale up production and import.
- A robust policy framework for blue and other low-carbon hydrogen.
To stimulate the entire hydrogen market and value chain, various subsidy programs are available. These include the SDE++ program for hydrogen projects, DEI+ and GroenvermogenNL for small-scale electrolysis projects in the demonstration and pilot phases, and the OWE tender, which subsidizes the unprofitable portion of hydrogen production.
Focus on renewable hydrogen in Northern Netherlands region
For the Northern Netherlands region there will be specific focus on the tools sets for renewable hydrogen development. This includes financial schemes for companies wishing to invest in electrolysis capacity and those that must choose between renewable hydrogen, CCS, or direct electrification for their sustainability efforts. The final decision on this will be made in the spring. In addition, there will be a focus on simplifying local hydrogen production, with the government aiming to support municipalities with procedures.
Reliable hydrogen infrastructure
A reliable transport and storage infrastructure is essential for connecting hydrogen supply and demand. Businesses must have clarity about the infrastructure before they can invest. The Netherlands is among the first countries to begin building a hydrogen infrastructure.
Spatial planning procedures have started for a large number of routes, and in Rotterdam, infrastructure construction has already begun. The pipelines in the four coastal industrial clusters, including Eemshaven port in the northern region, are expected to be completed by 2030 at the latest. The important Delta-Rhine corridor, which plays a major role in the hydrogen market, is expected to be completed between 2031 and 2032.
The Netherlands as a hub in global hydrogen trade
The government is strongly committed to energy diplomacy to increase security of supply and position the Netherlands as a hub in the global hydrogen trade. Various forms of hydrogen carriers are being explored in this regard.
A concrete example of this international collaboration is the visit of King Willem-Alexander and Dutch ministers to Norway and Denmark in the autumn of 2024. During this visit, they discussed pipelines, blue hydrogen, and applications in the maritime sector.
Subsidies to support innovation in the manufacturing industry
The government is also encouraging the development of the Dutch manufacturing industry. More than one hundred companies in the Netherlands, including startups, produce components for electrolyzers and other equipment. To future-proof this sector, the government is collaborating with businesses and knowledge institutions on circularity, PFAS-free alternatives, and the use of less critical materials.
To support these developments, subsidies are being provided, including through GroenvermogenNL. With a budget of €150 million, schemes such as the IMKE scheme and Learning Communities are being used to promote innovation and collaboration in the manufacturing industry.
Importance of stable and effective government policy
The committee emphasizes the importance of a stable and decisive government policy. For entrepreneurs, it's crucial that there are clear frameworks before they can invest. While the committee demonstrates that numerous regulations already exist and significant investments are being made in hydrogen, much work remains to be done.
The hydrogen economy will only truly thrive with a surplus of renewable energy, which isn't yet in place. Furthermore, infrastructure is a key requirement, both for Dutch businesses and for the import and international hydrogen trade.
- Geerte de Jong, Hydrogen Chain Expert at New Energy Coalition
The committee is eagerly anticipating the Spring Memorandum. It should provide more clarity on the next steps and plans for 2025 and beyond.
Green Gas
The future of green gas was also discussed during the committee debate. Read what Ruud Paap, green gas expert at New Energy Coalition, was noticeable during the debate.
