EU Commission Limits the Netherlands’ Plans to Subsidize Green Hydrogen Production
On Sept. 14, 2020 the Dutch minister of Economic Affairs and Climate informed the Dutch Parliament that the EU Commission does not consent to the granting of subsidies for the environmentally friendly production of hydrogen through sustainable energy (so-called ‘green hydrogen’) under the Dutch SDE++ scheme in the form requested by the Dutch government. State-aid rules require that the EU Commission provides its consent before any subsidies are granted.
This is a setback for the Dutch government and its plans to reduce greenhouse gas emissions by means of hydrogen. These plans were laid out in the Dutch hydrogen vision presented to the Parliament as recently as March 30, 2020. The minister has announced that the available subsidy for green hydrogen under the SDE++ scheme will remain available but will be reduced as a result of the discussions with the EU Commission (by limiting the operating hours that can be subsidized). Other Dutch subsidy schemes may be available for green hydrogen projects as well.