European Commission approves €246 million Dutch scheme to support renewable hydrogen production
The European Commission has approved, under EU State aid rules, a €246 million 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 end dependence on Russian fossil fuels and fast forward the green transition.
The Netherlands notified the Commission of its intention to introduce a €246 million scheme to support the production of renewable hydrogen in order to increase the country's electrolysis capacity.
The scheme will support the construction of at least 60 MW of electrolysis capacity. The aid will be awarded through a competitive bidding process planned to be concluded in 2023. The tender will be open to all companies established in the European Economic Area and operating, or wishing to build and operate, a hydrogen production unit in the Netherlands. The aid will take the form of a direct grant for a 7-to-15-year period. Beneficiaries will have to prove compliance with EU criteria for the production of renewable fuels of non-biological origin, set out in recently adopted delegated acts on renewable hydrogen. This includes contributing to the deployment or financing of the additional renewable electricity needed to produce the renewable hydrogen supported under the measure.
The scheme will contribute to the Netherlands's efforts to achieve 500 MW of electrolyser 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-based electrolysers and the production of up to 1 million tonnes of renewable hydrogen by 2024, and at least 40 GW with a production of up to 10 million tonnes of domestic renewable hydrogen in the EU by 2030. The Netherlands expects that the scheme will lead to the equivalent of around 55 kilotons of CO2 being avoided every year until 2030, which will contribute to the Netherlands' efforts to reduce its greenhouse gas (GHG) emissions by 55 % by 2030 and to achieve climate neutrality by 2050, compared to 1990 levels.
The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) the Treaty on the Functioning of the European Union, which enables Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG').
