The Dutch hydrogen market has exhibited notable growth in supply and demand between October 2023 and April 2024, according to ICIS, a global commodity intelligence source.
Despite this growth, significant challenges remain, as no projects in the Netherlands have advanced beyond the early development phases, with a complete lack of Final Investment Decisions (FIDs).
Despite being recognized as a potential hub for large-scale hydrogen trade due to its strategic infrastructure capabilities, the Dutch hydrogen market has seen little in the way of project progression. Jake Stones, hydrogen editor at ICIS, notes, “Despite apparent growth, this lack of progression indicates underlying market challenges that need to be addressed to fully capitalize on the potential.”
The ICIS Hydrogen Foresight project tracked updates to 38 supply-side projects and 21 demand-side projects, showing a modest growth in supply capacity by 777 MW (4.8%) and an increase in demand from 22.7 TWh to 25.7 TWh (up 3 TWh). While economic drivers such as industry support mechanisms and clearer energy decarbonization targets are encouraging investment proposals, financial challenges and regulatory uncertainties continue to impede progress.
In the case of the Netherlands, projected supply far exceeds announced demand. This imbalance indicates potential producers may be hesitant in a highly competitive market to secure purchases. On the demand side, the willingness to pay does not align well with projected production costs, further contributing to hesitation in advancing projects to FID.
