EU approves €246 million renewable hydrogen production plan for the Netherlands

2023-08-01 10:41:09

The European Union approved a 246 million euro renewable hydrogen production plan for the Netherlands to promote REPower EU goals, end dependence on Russian fossil fuels and accelerate the transformation of green energy.

According to EU state aid rules, the European Commission approved a 246 million euro renewable hydrogen production plan in the Netherlands. The plan is in line with the EU Hydrogen Strategy and the European Green Agreement to promote the development of renewable hydrogen. The plan also helps to achieve REPower EU goals , end dependence on Russian fossil fuels and accelerate the transformation of green energy.

Netherlands Renewable Hydrogen Production Program

The Netherlands has applied to the European Union for a 246 million euro program to support renewable hydrogen production and enhance electrolysis capacity in the Netherlands.

The program supports the construction of at least 60 megawatts of electrolysis capacity. And assistance will be provided through a competitive bidding process to be completed in 2023. The tender will be open to all hydrogen production companies established and operating in the European Economic Area or wishing to establish and operate in the Netherlands. The assistance will take the form of direct grants lasting between 7 and 15 years. Project beneficiaries must demonstrate compliance with EU standards for the production of fuels of renewable, non-biomass origin, as set out in the recently adopted Commission Act on Renewable Hydrogen. Include the deployment or financing of additional renewable electricity needed for renewable hydrogen production supported by the measure.

The plan will help the Netherlands achieve its goals of 500 megawatts by 2025 and 3-4 gigawatts by 2030. At the same time, the plan supports the EU's goal of installing at least 6 gigawatts of electrolyzers based on renewable hydrogen in 2024 to produce up to 1 million tons of renewable hydrogen in the EU, and reaching at least 40 gigawatts of capacity in 2030 to produce up to 10 million tons of renewable hydrogen. The Netherlands expects that the plan will lead to an equivalent reduction of about 55 kilotons of carbon dioxide per year. By 2030, this will contribute to the Netherlands' efforts to reduce its greenhouse gas (GHG) emissions by 55% below 1990 levels by 2030 and to achieve climate neutrality by 2050. The

European Commission's assessment

assessed the measure against EU state aid rules, in particular Article 107 (3) (C) of the Treaty on Functioning of the European Union and the 2022 Climate, Environmental Protection and Energy State Aid Guidelines (CEEAG).

The Commission has concluded

that the scheme is necessary and appropriate to promote the production of renewable hydrogen and the decarbonization of industry, transport and/or energy.

The scheme has an "incentive effect" in that if the beneficiary does not have public support, the relevant investment will not be made.

The Netherlands has sufficient safeguards in place to ensure that the scheme has limited impact on competition and trade within the EU. Project beneficiaries will be selected through an open, transparent and non-discriminatory bidding process, and assistance will be kept to a minimum and used only for the implementation of the project. The aid will have positive effects, especially on the environment in line with the European Green Agreement, which will outweigh any possible negative effects that may distort competition.


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Correlation

The European Union approved a 246 million euro renewable hydrogen production plan for the Netherlands to promote REPower EU goals, end dependence on Russian fossil fuels and accelerate the transformation of green energy.

2023-08-01 10:41:09

It is necessary to formulate a capacity replacement plan to make up for the difference in capacity. The Measures stipulate that within two years from the date of announcement of the capacity replacement scheme, the project construction enterprise shall complete the formalities of filing and environmental assessment. In the policy interpretation, it is more clearly pointed out that the balance of production capacity should be completed and the relevant procedures such as filing, environmental assessment and energy assessment should be improved.