The Netherlands risks losing its leading position in green hydrogen production. Experts warn that high costs could drive producers and customers abroad.
In contrast to the Netherlands, where high costs are causing a possible departure, a recent report shows that the UK’s national gas grid is ready to transition to absorbing up to 100% green hydrogen. This offers prospects for reducing carbon emissions and fossil fuels. With its new €2.3 billion hydrogen plan, Spain is positioning itself as a leader in the European hydrogen economy by encouraging green energy and hydrogen production with substantial subsidies. The Netherlands must adapt quickly to maintain its position.
Why this is important
The Netherlands has the potential to become a leading country in green hydrogen. The goals are clear, and the ambition is high. But will plans and reality coincide in time? The situation of the United Kingdom and Spain contrasts with the Dutch hydrogen dynamic. This calls for a careful comparison of hydrogen developments in these three European contexts.
The British approach: ready for the future
In the United Kingdom, National Gas reported positive results with blending hydrogen into the national gas grid after a year of testing, ranging from a 2% to a 100% blend. Not one part of the pilot phase showed significant obstacles to hydrogen integration. This indicates that the UK can make great strides in reducing carbon emissions and dependence on fossil fuels.
The second phase of the UK project now focuses on the challenges of compressing hydrogen using existing infrastructure. This includes the possible adaptation of gas compressor stations for the use of hydrogen. According to Jon Butterwork, the CEO of National Gas, this development can help achieve the UK’s ambition to become a “clean energy superpower.”
Spain’s Green Hydrogen Initiative
Spain, another country with sun-drenched coastlines and strong winds, is also making great strides. The new €2.3 billion plan, designed to support the transition to clean energy, includes subsidies for green energy industries and the production of green hydrogen. The Spanish government understands that subsidies are vital for hydrogen projects, given their high cost and lack of competitiveness without public funding.
Earlier this month, Madrid approved a €794 million package for large green hydrogen projects. This shows the determination to compete as a major hydrogen producer in Europe. Spain’s draft climate strategy targets 11 gigawatts of electrolyzer capacity by 2030, a significant increase from the previous target of 4 gigawatts.
The Netherlands and the Hydrogen Challenge
While the UK and Spain are strengthening their positions in the hydrogen economy, the Netherlands is at a crossroads. The high cost of green hydrogen production threatens to undermine national ambitions. Experts fear producers and customers will move abroad unless action is taken to improve the situation.
According to Mission H2 (“The Netherlands, Hydrogen Country”), the Netherlands is well positioned to develop the hydrogen market further. The country has significant wind energy in the North Sea, extensive technological knowledge, and an infrastructure for importing, transporting, and storing hydrogen. The question, however, is whether the Netherlands is taking the necessary steps to capitalize on this potential and deploying the financial resources needed to make the hydrogen economy competitive.
If the Netherlands wants to maintain its leading position in green hydrogen production and not lag behind developments in other countries, it is necessary to act quickly. It is time to strengthen green ambitions with concrete and practical measures that pave the way to a sustainable future.
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