The Dutch government will allocate €2.1bn ($2.4bn) in subsidies to boost domestic hydrogen production and introduce a 4% mandate for the use of green hydrogen in industrial applications.
The Green Growth Package, proposed by the Deputy Prime Minister and Minister of Climate Policy and Green Growth, Sophie Hermans, and approved by the Dutch Cabinet of Ministers last week (April 25), is designed to accelerate the country’s energy transition.
In particular, significant investment has been earmarked for hydrogen production and use. Up to €2.1bn will be available for green hydrogen production, while €662m ($751m) has been dedicated to encouraging the adoption of green hydrogen within industrial processes.
Furthermore, the government has opted “for a relatively low mandatory amount of renewable hydrogen of 4%.” The letter from Minister Hermans added, “This makes this obligation easier for customers to bear.”
The 4% requirement represents an initial step toward broader decarbonisation goals, aimed at encouraging early market development without overburdening industry at a critical stage of scaling up supply and infrastructure.
The EU Renewable Energy Directive (RED III) mandates that at least 42% of hydrogen used in EU industry must come from renewable sources by 2030, increasing to 60% by 2035.
The Netherlands is a major EU grey hydrogen consumer, using around 1.3 million tonnes per year in industries like refining and ammonia. Based on this, H2 View estimates that the 4% mandate would require 52,000 tonnes of green hydrogen.
The letter continued, “In addition, the refining route for green hydrogen is being adjusted to make it more attractive to use green hydrogen in the production of fuels.”
Adjustments to the refining pathway are expected to accelerate the decarbonisation of conventional fuel production, which is reportedly one of the largest existing consumers of hydrogen in the Netherlands.
All these measures have been designed to contribute to the Netherlands’ goal of achieving climate neutrality by 2050.
“With this package, we are taking concrete steps to ensure that our country becomes stronger and more independent,” Climate Minister Hermans said.
“I am working towards a clear goal in which we do not take measures that are not feasible, but realistically look ahead and do what is necessary to achieve that goal together.”
