Netherlands Rejects Biomass Subsidies for Coal Plant Conversion
Eemshaven, Sunday, 4 October 2026.
Former Climate Minister Rob Jetten denied subsidies for converting the Eemshaven coal plant to biomass, forcing energy companies to pivot toward cleaner technologies like green hydrogen.
A Decisive Halt to Biomass Subsidies
The Dutch energy landscape has reached a critical turning point as former Climate and Energy Minister Rob Jetten solidified a policy shift by denying government subsidies for converting coal-fired power stations into biomass-burning facilities [1]. This decision directly impacts major utility operations, including RWE’s Eemshaven power plant in Groningen, which has co-fired biomass with coal since 2019 [3]. By withholding these financial incentives, the Dutch government is forcing energy developers to pivot away from woody biomass and redirect their innovation strategies toward genuine low-carbon technologies, such as green hydrogen, carbon capture, and direct electrification [1][5].
The Controversy of ‘Green’ Sourcing
The policy shift comes amid intense scrutiny over the sustainability of industrial wood pellets. Energy giant RWE burns an estimated 1.5 million tonnes of biomass annually in the Netherlands and has historically been eligible for up to €2.5 billion in cumulative subsidies [2][3]. However, a series of investigations has exposed deep systemic flaws in the supply chain. Specifically, RWE imports 200,000 tonnes of biomass from Malaysia, sourcing from the Rainbow Pellet factory in the state of Pahang [3]. While RWE maintains that its materials meet strict sustainability standards, satellite analyses and forestry reports compiled in late 2026 revealed that the factory processes whole hardwood logs from clearcut primary rainforests, rather than simple sawmill waste [3]. This represents 13.333 percent of the utility’s annual biomass volume being linked to controversial tropical sourcing.
Exploiting the Category 5 Loophole
Environmental advocates have long criticized what they call the ‘Category 5’ loophole within Dutch sustainability regulations [3]. Under this classification, biomass labeled as residual waste or sawdust is exempt from rigorous geographic origin tracking [3]. According to Fenna Swart of Comité Schone Lucht, this label essentially bypassed the world’s strictest sustainability criteria [3]. The backlash culminated in June 2025 when Biofuelwatch and Comité Schone Lucht filed a formal complaint with the Dutch Emissions Agency alleging fraud and greenwashing [3]. Furthermore, the Dutch Food and Consumer Product Safety Authority (NVWA) issued a provisional fine against RWE for failing to prove its imported timber was legally and sustainably harvested, intensifying political pressure on Jetten to end the subsidy regime [3].
The Scientific and Public Backlash
The denial of subsidies also aligns with growing scientific consensus regarding the carbon intensity of wood combustion. Martijn Katan, an Emeritus Professor at Vrije Universiteit Amsterdam, has pointed out that burning wood in power plants actually releases more CO₂ into the atmosphere than burning coal [3]. This reality sparked public protests, including a demonstration on September 30, 2026, by Extinction Rebellion and ‘Kappen met Kolen’ at the Amercentrale in Geertruidenberg [2]. Activists argued that replacing coal with imported trees is a paper-based accounting trick that greenwashes actual emissions [2]. With biomass subsidies now off the table for future conversions, the Netherlands must rapidly address its grid congestion issues to successfully integrate alternative green technologies into its national power grid [5].