Demand Creation Vital for Green Hydrogen Market Growth
Netherlands, Thursday, 13 February 2025.
New research highlights that stimulating demand, alongside supply, is crucial for developing a thriving green hydrogen market, crucial to the Netherlands’ energy transition.
Research Findings and Industry Response
A comprehensive study presented on February 11, 2025, by Deloitte reveals that targeted regulations and policy measures are essential to stimulate demand for green hydrogen [1][2]. The research, commissioned by Invest-NL and Energie-Nederland, was presented to Karlo Van Dam, Director of Industrial Sustainability at the Ministry of Climate and Green Growth, during a well-attended event with 150 industry stakeholders [2]. The study emphasizes that demand obligations are most effective when implemented at the product level, closer to end-users [1].
European Integration and Market Development
The findings stress that a European-wide approach is crucial for maximizing impact and creating a level playing field across industries [1]. Current European climate policies heavily focus on emission trading and industrial producer obligations, which, while important, create additional costs for European companies investing in sustainable solutions like green hydrogen [1]. This cost disparity particularly affects competition with imported goods, as importers aren’t subject to the same sustainability requirements [1].
Government Response and Future Plans
Karlo van Dam responded enthusiastically to the report, stating that demand creation should become an integral part of the European Clean Industrial Deal [2]. The Dutch government is actively working to integrate demand creation into broader European policy frameworks [2]. This aligns with recent EU initiatives, as demonstrated by the EU Competitiveness Compass presented on January 29, 2025, which emphasizes the creation of lead markets for clean products [8].
Industry Transformation Challenges
The chemical industry, a key sector for green hydrogen adoption, is facing its largest transformation in history [9]. Without additional policy measures, there’s a risk of stagnation in the energy transition, particularly in heavy industry sectors where green hydrogen is crucial [1]. The implementation of demand-creating policies is seen as essential for supporting a sustainable energy system and maintaining a competitive European industrial base [1][2].