Green hydrogen production sites linked directly to wind or solar plants will be able to qualify for state subsidies in the Netherlands, the government has announced.

The latest low-carbon energy subsidy round makes €13bn ($14.35bn) available to low-carbon energy projects, around €6bn more than last year’s round thanks to a windfall from higher carbon prices and a government budget increase.

“I am pleased that a substantial budget is available for the upscaling of renewable energy and other sustainable measures. This is not only necessary to become more sustainable more quickly and to achieve our climate goals but also to reduce our dependence on the import of fossil fuels as quickly as possible,” says Dutch climate and energy minister Rob Jetten.

The Dutch SDE++ subsidy auction will, for the first time, allow bids from green hydrogen projects directly linked to wind and solar plants as well as hybrid glass furnace projects to help electrify industrial processes. The first round, for projects requiring up to €65/t CO₂ will open on 28 June, the government says.

“With €13bn available for SDE++, the energy transition will receive a major push that is desperately needed,” says Olof van der Gaag, chair of the Dutch Renewable Energy Association (NVDE).

“With €13bn available for SDE++, the energy transition will receive a major push that is desperately needed” Van der Gaag, NVDE

The Netherlands has ambitious plans to develop a hydrogen market, aiming to install 500MW of electrolyser capacity by 2025 and up to 4GW by 2030. The government estimates reaching this target will deliver hydrogen volumes equivalent to up to 2bn m³ of natural gas, presenting an important alternative to Russian imports, Jetten says.

The Netherlands is already home to many planned green hydrogen projects, including the huge NortH2 development, which aims for over 10GW of offshore wind-powered hydrogen production by 2040.

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Author: Karolin Schaps