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The Netherlands is investing heavily in factories for renewable hydrogen

by AI | 30.Jul 2024 | Europe in brief AI

Brussels agrees with Dutch state aid for green hydrogen.

Hydrogen storage facility in Bierwang, Germany. Photo: Peter Kneffel/dpa

BRUSSELS (ANP) – The Netherlands is allowed by the European Commission to provide state aid of 998 million euros to a program for the production of renewable hydrogen. According to the commission, the subsidy fits excellently within the environmental and energy goals of the European Union. In addition, Brussels also approved a subsidy of 80 million euros for the company Djewels for the construction of a test factory for renewable hydrogen.

The industry can use hydrogen as a sustainable replacement for natural gas. Hydrogen is called green or renewable when water is split into oxygen and hydrogen using sustainably generated electricity, so no CO2 is released.

For the implementation of the extensive hydrogen program, there are public tenders that end this year. Financial assistance for the winning companies consists of a subsidy of up to 80 percent for the construction of a plant and then support costs for a period of five to ten years.

The Netherlands hopes to avoid at least 55 kilotons of CO2 emissions by generating sustainable hydrogen by 2030. The green energy serves the dual purpose of climate gain and reducing dependency on Russian natural gas.

The European Commission judges that both programs do not distort market competition in the European Union and do not cause unfair competition.

(July 29, 2024)