Producers and buyers of green hydrogen in the Netherlands are having a major setback. In the distribution of European hydrogen subsidies, all Dutch projects were left behind, reports the FD. “Our hydrogen is twice as expensive as in other countries,” says FD journalist Noah Moeys.
The Netherlands must adjust its hydrogen ambitions, companies are likely to leave
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It is a blow in particular to the ambitions that the Netherlands has in the field of hydrogen. ‘The Netherlands has a very good starting position due to the gas network and the knowledge and experience that has been gathered over the years.’ But due to missing out on European subsidies, the Dutch industry is coming back down to earth. ‘The European auction showed that we have not scored a single time and that our hydrogen is twice as expensive as in other countries.’ The price per kilo of hydrogen in particular was important in the distribution of the money.
‘If you can make hydrogen much cheaper in other countries, why would you do it here?’
The fact that the costs for hydrogen are so high here is due to the problems surrounding the power grid. ‘Our electricity costs are high and our green hydrogen is made by offshore wind farms. That is actually quite a bit more expensive if you add the costs for connection to the network and taxes.’ Other countries have a better starting position due to the more favorable climate, says the FD journalist. ‘In Spain you always have sun and almost always wind, which makes it much cheaper to produce green energy.’
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In the FD, experts warn against the departure of companies that focus on production and purchasing green hydrogen. ‘If you can make hydrogen much cheaper in other countries, why would you do it here? This also applies to customers of green hydrogen, such as companies that make sustainable aviation fuels or companies that produce ammonia.’ It could also have consequences for Tata Steel. The company must become more sustainable and is focusing, among other things, on hydrogen.
More investments
The Dutch government is also trying to stimulate the sector itself. Last week, climate minister Rob Jetten allocated another 250 million euros to Dutch projects in this area. ‘But that is not nearly enough to make it profitable. One expert said tens of billions more are needed.” According to the journalist, government investments are therefore one of the few ways to still ‘get things off the ground here’.
Also read | Hydrogen projects stall due to missing ‘preconditions’
