European Commission
Commission approves €246 million Dutch scheme to support renewable hydrogen production
The European Commission has approved, under EU state aid rules, a €246 million Dutch scheme to support the production of renewable hydrogen. The measure aims to contribute to the development of renewable hydrogen in line with the objectives of the EU Hydrogen Strategy and the European Green Deal. The scheme will also contribute to the objectives of the REPowerEU Plan to end dependence on Russian fossil fuels and fast forward the green transition.
The scheme will support the construction of at least 60 MW of electrolysis capacity. The aid will be awarded through a competitive bidding process planned to be concluded in 2023. The tender will be open to all companies established in the European Economic Area and operating, or wishing to build and operate, a hydrogen production unit in the Netherlands. The aid will take the form of a direct grant for a 7-to-15-year period.
The scheme will contribute to the Netherlands's efforts to achieve 500 MW of electrolyser capacity in 2025 and 3-4 GW by 2030. It will also support the EU's ambitions to install at least 6 GW of renewable hydrogen-based electrolysers and the production of up to 1 million tonnes of renewable hydrogen by 2024, and at least 40 GW with a production of up to 10 million tonnes of domestic renewable hydrogen in the EU by 2030.
The Commission assessed the measure under EU state aid rules, in particular Article 107(3)(c) the Treaty on the Functioning of the European Union, which enables member states to support the development of certain economic activities under certain conditions, and the 2022 Guidelines on state aid for climate, environmental protection and energy (‘CEEAG'). On this basis, the Commission approved the Dutch scheme under EU State aid rules.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “This €246 million Dutch scheme is another example of how we work towards securing Europe's decarbonised future. It will help ramping up the production of renewable hydrogen and facilitate the greening of sectors that are otherwise difficult to decarbonise. The aid will support the most cost-effective projects. And this while minimising possible distortions of competition."
A press release is available online.
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