Netherlands to launch Eur1 bil hydrogen production subsidy scheme in Oct

The Netherlands is set to launch a Eur1 billion ($1.1 billion) subsidy auction in October to support green hydrogen production, the country's enterprise agency in a statement Aug. 19.

The government will provide a subsidy of up to Eur9/kg for investment and operation costs of five to 10 years, with a maximum subsidy of half the total budget, it said.

Platts, part of S&P Global Commodity Insights, assessed the cost of green hydrogen production via alkaline electrolysis in the Netherlands, backed by renewable power purchase agreements, at Eur8.92/kg ($9.89/kg) on Aug. 19, up from Eur8.38/kg a month prior.

The assessment reflects one possible pathway for producing EU Renewable Energy Directive-compliant green hydrogen.

The auction, with a total budget of Eur998 million, opens Oct. 15 and closes Oct. 31 for facilities producing renewable hydrogen with a capacity of at least 0.5 MW.

The auction will be a competitive process, with the lowest bids in euros per kg given priority.

Funds for the investment support will be received two weeks after the start of construction, with the full subsidy awarded once the facility is in operation.