EC clears Eur998 million Dutch program to support renewable hydrogen

The European Commission's competition service has cleared a Eur998 million ($1.08 billion) Dutch program to support the production of renewable hydrogen under state aid rules, the commission said July 29.

The funding is to support construction of at least 200 MW of electrolysis capacity.

"The aid will be awarded through a competitive bidding process planned to be concluded in 2024," the EC said.

The tender will be open to projects of 0.5 MW and above.

The aid is to take the form of a grant of up to 80% of investment cost and a variable premium over five to 10 years.

Beneficiaries have to prove compliance with EU criteria for renewable fuels of non-biological origin (RFNBOs).

The Netherlands aims for 500 MW of electrolyzer capacity in 2025 and 3-4 GW by 2030.

The EU's ambition is for 6 GW of electrolysis by 2024, and at least 40 GW by 2030.

Platts, part of S&P Global Commodity Insights, assessed the price of electrolytic hydrogen (PEM, Netherlands, including capex) at Eur5.31/kg July 26.

In late April the Netherlands awarded almost Eur250 million across seven green hydrogen production projects with a total capacity of 101 MW.