Dutch Government Scrutinizes Shell’s Green Hydrogen Subsidies
The Hague, Monday, 26 May 2025.
The Dutch Climate Ministry is addressing potential public concern over Shell’s green hydrogen plans, highlighting the need for effective subsidy communication amid significant public funding involvement.
Overview of Shell’s Hydrogen Initiative
Shell’s Netherlands president-director Marjan van Loon has asserted the importance of setting ambitious goals for hydrogen production, which positions the Netherlands as a global leader in this sector. The government has committed to significant financial backing for green hydrogen, aligning with broader climate goals [1].
Financial Commitments Highlighted
The Dutch government has allocated €2.1 billion to bolster hydrogen initiatives as part of the 2025 Spring Agreement. This follows an accumulation of efforts since 2019 that have already seen €5 billion directed towards green hydrogen projects involving multinational corporations like Shell [2]. The total investment aims to significantly cut hydrogen production costs, potentially reducing prices from €1 million per MW to €350,000 per MW by 2030 [1][2].
Concerns of Negative Framing
Despite these financial commitments, the Dutch government remains concerned about negative public perception surrounding substantial subsidies funneled to large fossil fuel companies. This worry stems from past public relations challenges, notably around biomass and data center initiatives [1].
Public Communication Strategies
To mitigate these perceptions, the Ministry plans to implement a strategic communication plan, aiming to align public opinion with the government’s vision for green hydrogen. This involves constructing a shared narrative that highlights both the economic benefits and the environmental necessity of these subsidies [2][3].
The Role of HyCC and Global Collaboration
The Hydrogen Chemistry Company (HyCC), established in 2021, represents a joint effort by international investors to spearhead the Dutch hydrogen agenda. With significant investments from entities like the Australian Green Investment Group and firms from Singapore and the USA, HyCC is slated to be pivotal in achieving ambitious production targets [1].