EU approves Dutch State Aid for green hydrogen production

The European Commission has given the Netherlands permission to provide 998 million euros in state aid to a program for the production of renewable hydrogen. According to the Commission, the subsidy fits perfectly with the European Union's environmental and energy goals. In addition, Brussels has also approved a subsidy of 80 million euros for the company Djewels to construct a test plant for renewable hydrogen.

The industrial sector can use hydrogen as a sustainable replacement for natural gas. Hydrogen is called green or renewable when sustainably generated electricity splits water into oxygen and hydrogen, releasing no CO2.

Public tenders for implementing the large hydrogen program end this year. The financial aid for the winning companies consists of a subsidy of up to 80 percent for the construction of a plant and then support costs for five to ten years.

By generating sustainable hydrogen, the Netherlands hopes to avoid at least 55 kilotons of CO2 emissions by 2030. Green energy serves the dual purpose of reducing dependence on Russian natural gas and gaining climate benefits.

The European Commission thinks both programs do not distort market functioning in the European Union or create unfair competition.