The Dutch Government is set to hold its €998m ($1.01bn) green hydrogen subsidy auction from October 15 through to the end of the month.
The auction was previously approved by the European Commission, agreeing to provide state aid for the Dutch hydrogen production scheme, which is expected to support the construction of at least 200MW of electrolysis capacity.
Read more:EU supports Dutch 200MW hydrogen scheme with $1bn state aid
H2 View understands that the maximum amount a single project could be granted is 50% of the budget, although applicants will be ranked on a euro-per-megawatt basis. Individual projects will need to be at least 0.5MW in size to receive backing.
The Dutch Government is set to provide direct grants worth 80% of the upfront investment cost of the projects, in addition to a variable premium over five to 10 years.
Successful bidders must prove compliance with the EU criteria for the production of renewable fuels of non-biological origin (RFNBOs), as laid out in the delegated acts of renewable hydrogen.
Speaking on the auction in July (2024), Margrethe Vestager, European Commission Executive Vice-President, said, “This €998m Dutch scheme will help scale up the production of renewable hydrogen in the Netherlands by providing support to electrolyser projects of all sizes, while ensuring that any potential competition distortion is kept to the minimum.”
Last month, it was revealed by ICIS Hydrogen Foresight that no Dutch hydrogen projects had progressed further than a final investment decision.
Read more: No Dutch hydrogen projects have passed FID despite increased demand: ICIS
Despite future low-carbon hydrogen demand increasing by almost 14% over the six months prior to April 2024, ICIS data showed a lack of projects reaching FID.
The data also reported that production capacity increased to approximately 17GW by 2040 as of April 2024, with 74% of this capacity forecasted to be online by 2035.
1895 Podcast
Subscribe to the 1895 Podcast from gasworld Global Insights (GWGI) and listen to the latest analysis, insights and viewpoints on the biggest talking points in gases and energy each week.
The 1895 Podcast is a new addition to GWGI, aiming to bring insights, news, and interviews for the industrial gases and energy sectors in a laid-back and conversational manner. The podcast aims to discuss the key inflection points of the industry’s future – on a regional, technological and applications level – and its increasingly critical role in the energy transition of today and tomorrow.
Available on all major podcast platforms, from Apple to Spotify to Amazon Music, search for 1895 wherever you get yours – and like and subscribe to ensure you don’t miss an episode!
