Netherlands Allocates €662 Million for Industrial Hydrogen Transition by 2027
Amsterdam, Monday, 15 December 2025.
The Dutch government’s new STIHWI program will distribute €662 million to help industrial companies adopt renewable hydrogen, launching in early 2027 after a public consultation period ending January 2026. This initiative operates through a competitive bidding system where companies propose prices and usage periods, with lowest bidders receiving priority funding. The program supports mandatory renewable fuel obligations requiring Dutch industries to use 4% renewable hydrogen by 2030, escalating to 9.9% by 2035 under EU directives.
Market Stabilization Through Strategic Coordination
The STIHWI program addresses a critical challenge in the emerging hydrogen economy by creating better alignment between supply and demand within the industrial sector [1]. Industrial consumers will gain greater certainty regarding hydrogen availability and pricing, while producers and importers receive assurance about market demand for their renewable hydrogen products [1]. This dual-sided approach represents a departure from previous subsidy frameworks that often failed to coordinate market participants effectively.
Competitive Bidding Framework Maximizes Budget Efficiency
The STIHWI program operates through a unique bidding mechanism that differs significantly from traditional subsidy allocation methods [1]. Industrial companies must submit proposals containing two critical components: the price they are willing to pay for renewable hydrogen units and the specific time period during which they plan to utilize this hydrogen [1]. Companies offering the lowest bids receive priority access to funding, ensuring the €662 million budget achieves maximum efficiency and reaches the greatest number of participating businesses [1]. A key requirement mandates that applicant companies establish supply agreements with certified renewable hydrogen producers or importers before receiving subsidy approval [1].
Legislative Timeline and Implementation Schedule
The program follows a structured development timeline beginning with a public consultation period that runs until January 30, 2026, allowing businesses to provide feedback on the draft regulation [1]. Following this consultation phase, the Ministry of Climate and Green Growth will evaluate responses and publish the final regulation by the end of 2026, with the first funding round opening in early 2027 [1]. An online information session scheduled for January 13, 2026, will provide detailed guidance for potential applicants [1]. This timeline aligns with broader legislative developments, as the Dutch Council of State published its advisory opinion on December 15, 2025, regarding the annual renewable fuel obligations bill [2].
EU Compliance and National Hydrogen Targets
The Netherlands faces substantial obligations under the European Union’s Renewable Energy Directive (RED), requiring the country to achieve at least 42% renewable hydrogen usage by 2030 and 60% by 2035 [2]. The proposed legislation implements annual obligations starting at 4% in 2030 and increasing to 9.9% in 2035 [2]. However, the Dutch Council of State has identified significant risks that current measures, including the annual obligations and expected subsidy contributions, may prove insufficient to meet these EU targets [2]. The Netherlands holds particular strategic importance as the second-largest hydrogen user in the European Union, making compliance with these directives especially challenging [2]. The government plans to address this gap through a combination of annual obligations and production and demand subsidies, though concerns remain about the adequacy of this approach [2].