New calculation rules and reduced subsidies threaten Dutch plans to develop green hydrogen, the Financieele Dagblad (FD) reports. The intention to set up hydrogen plants on a large scale, especially by refineries, is at risk because these companies can now expect less financial support. The anticipated subsidy has been reduced to only 40 percent of what was originally promised. This has made it less attractive for large refineries to invest in green hydrogen plants.
This scaling back of the subsidy, according to the FD, is particularly significant because investors in the Netherlands had already counted on a certain level of financial support to ensure the profitability of their projects. With the new restrictions, these expectations are falling apart.
Crucial for energy transition
However, the production of green hydrogen is crucial to the energy transition because it helps industrial sectors that are difficult to decouple from natural gas. For such industries, as well as sectors such as transportation, hydrogen offers a cleaner replacement for natural gas.
Germany is betting on large-scale production
The Netherlands’ approach differs greatly from Germany’s, which is much more committed to large-scale production of hydrogen, a strategy that is precisely what is needed to make hydrogen projects both feasible and affordable.
Related Posts
