Dutch and Spanish green hydrogen economies get €2bn boost from EU
Pamela Largue
Posted on: 30 July 2024
In the past week| the EU Commission approved two separate schemes to promote green hydrogen production in Spain and the Netherlands.
In the past week, the European Commission approved two separate schemes to promote green hydrogen production, a €1.2 billion ($1.3 billion) scheme for Spain and a €998 million ($1.8 billion) scheme for the Netherlands.
The Dutch scheme, approved under EU State aid rules, will support the construction of at least 200MW of electrolysis capacity.
It will also support the EU's broader goal to instal at least 6GW of renewable hydrogen electrolysers by 2024, and at least 40GW by 2030.
Furthermore, the Netherlands expects that the scheme will lead to about 55 kilotonnes of CO2 being avoided annually until 2030.
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Margrethe Vestager, executive vice-president in charge of competition policy said: "Developing renewable hydrogen production is a key aspect of EU’s climate neutrality goal. This €998 million Dutch scheme will help scaling up the production of renewable hydrogen in the Netherlands by providing support to electrolysers projects of all size while ensuring that any potential competition distortions are kept to the minimum."
The aid, which will take the form of a grant, will be awarded through a competitive bidding process, which will be open to projects with a minimum capacity of 0.5MW. Bidding will conclude in 2024.
Spanish green hydrogen scheme
The Commission also approved a €1.2 billion Spanish scheme to support investments in the production of renewable hydrogen and the development of hydrogen valleys and clusters.
The scheme was approved under the State aid Temporary Crisis and Transition Framework and will support investments in the production of renewable hydrogen with an installed capacity of at least 100MW.
According to the Commission's release, investments supported may encompass the production of renewable hydrogen-derived fuels, renewable hydrogen storage, as well as the production of renewable electricity.
To be eligible, applicants should have secured agreements with off-takers to cover at least 60% of the renewable hydrogen or renewable hydrogen-derived fuel expected to be produced.
Margrethe Vestager commented: "This €1.2 billion scheme will enable Spain to accelerate the deployment of renewable hydrogen capacities, in line with the EU Hydrogen Strategy and the European Green Deal. The scheme will also help Spain reduce its dependence on imported fossil fuels, while minimising any potential distortions to competition."
