In a bid to scale up green hydrogen production, the Dutch government has allocated €700 million in subsidies to 11 projects totalling 602MW of electrolyser capacity—three times the size of any facility currently under construction in the Netherlands.
Yet, despite a €998 million budget and €3.2 billion in submitted applications, nearly €300 million in available funding remains unallocated.
The funding comes from the OWE scheme, the Netherlands’ flagship subsidy programme for renewable hydrogen. It offers support for up to 80% of project capital expenditure and provides operating support based on the amount of hydrogen produced. The selected projects, which include proposals from major players like Air Liquide, Vattenfall, Uniper, Statkraft, and smaller ventures such as Den Tol Duurzaam and Circul8 Hydrogen Factory, mark a decisive step in moving green hydrogen closer to commercial scale in one of Europe’s most densely populated energy markets.
The government has confirmed that €1.78 million per MW is the average grant awarded under this round, with a project completion deadline set for mid-2030. This timeframe aligns with broader EU climate targets, including the Fit for 55 package and the bloc’s ambition to produce 10 million tonnes of renewable hydrogen annually by 2030.
Despite the scale of the awards, the underallocation of funds raises questions about project readiness and market maturity. Although demand for funding was high—with over €3.2 billion in bids—the government ultimately backed fewer than half of the projects that applied. That discrepancy points to significant due diligence filters, likely driven by concerns over technology maturity, grid integration, and bankability.
In contrast to past initiatives, the OWE scheme links subsidies to actual hydrogen output, rather than simply installed capacity—a shift that introduces performance accountability. However, given the volatility of electricity prices and the as-yet-limited off-take agreements for green hydrogen in Europe, there remains uncertainty around the financial viability of these projects without long-term power purchase or hydrogen sales agreements.
Notably, the subsidised capacity dwarfs the 200MW Holland Hydrogen 1 project currently under development by Shell, underlining the scale of the shift now underway. If realised, the 602MW awarded will significantly boost the Netherlands’ electrolyser fleet, potentially positioning the country as a leading green hydrogen hub in northwest Europe.
Yet the road ahead is complex. Infrastructure to transport and store hydrogen remains limited, while developers face growing competition for renewable electricity—a prerequisite for certifying hydrogen as “green” under EU guidelines. Delays in spatial planning, permitting, and grid connection further challenge deployment at scale.
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