EU Invests €1 Billion in Dutch Green Hydrogen Production
Brussels, Tuesday, 10 September 2024.
The European Commission has approved over €1 billion in state aid for the Netherlands to boost renewable hydrogen production. This significant investment aims to enhance innovative technologies and increase electrolyzer capacity, marking a major step towards sustainable energy in Europe.
Breakdown of the Investment
Of the over €1 billion allocated, a substantial portion of €998 million will be used to subsidize the construction of at least 200 megawatts (MW) of electrolysis capacity. This increase in capacity is vital for scaling up the production of renewable hydrogen, which is seen as a cornerstone in the European Union’s Green Deal objectives. The remaining €80 million is designated for Djewels B.V., an innovative company based in the Netherlands, to develop advanced production technologies for green hydrogen. Djewels plans to utilize an alkaline electrolysis installation with a capacity of 20 MW, starting construction in 2024 and becoming operational by 2027.
Strategic Importance and Broader Efforts
The state aid is part of the European Commission’s 2022 guidelines on climate, environmental, and energy aid. These guidelines are aimed at accelerating the green transition by supporting projects that contribute to climate neutrality. According to the European Commission, the Dutch state aid scheme is necessary to expedite the green transition and make the Dutch industry more sustainable. Recently, the European Commission also approved a €750 million state aid scheme to promote the electrification of industrial processes in the Netherlands.
Djewels B.V. and Technological Innovation
Djewels B.V., the primary beneficiary of the €80 million, is set to revolutionize the hydrogen production landscape with its innovative technology. The company’s alkaline electrolysis installation promises to enhance efficiency and reduce costs, making green hydrogen more accessible. Djewels’ project aligns with the broader European strategy to lead in green energy technologies and reduce dependency on fossil fuels. The project is expected to commence in 2024 and become operational by 2027, contributing significantly to the EU’s climate goals.
Collaborative Efforts in Green Hydrogen
The Netherlands is not alone in its pursuit of green hydrogen. An industry partnership, including Shell, ENGIE, Vopak, and Anthony Veder, is considering producing green hydrogen in Portugal and distributing it in the Netherlands. The agreement, signed by these companies, aims to assess the production and liquefaction of hydrogen in Portugal for transportation to the Netherlands. The first shipment of liquid hydrogen from Sines port to Rotterdam is expected by 2027. This collaboration underscores the importance of international cooperation in achieving sustainable energy goals.
Future Prospects
The approval of this state aid is a significant milestone in the EU’s efforts to combat climate change. By investing in renewable hydrogen, the Netherlands is positioning itself as a leader in sustainable energy. The initiative is expected to create jobs, stimulate economic growth, and reduce carbon emissions, contributing to the EU’s goal of becoming climate-neutral by 2050. The focus on innovative technologies and increased electrolyzer capacity will pave the way for a more sustainable and resilient energy system in Europe.