European Union approves €780 million Dutch subsidy for green hydrogen
The European Commission has approved, in accordance with EU state aid rules, a €780 million Dutch scheme to support the production of renewable hydrogen, in line with the objectives of the Clean Industrial Deal. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF), which the Commission adopted on June 25, 2025.
The support will be awarded through a competitive tendering procedure, which is expected to be completed in the first quarter of 2027. The support will take the form of a direct grant, consisting of an investment subsidy covering up to 80% of the investment costs and a variable premium paid over a period of five to ten years. Beneficiaries must demonstrate that they comply with the EU criteria for the production of renewable fuels of non-biological origin (RFNBOs), as set out in the delegated legislation on renewable hydrogen.
The Netherlands estimates that the scheme will support the construction of approximately 400 megawatts of electrolyser capacity and stimulate the production of up to 40 kilotonnes of renewable hydrogen per year, resulting in an annual reduction of approximately 324 kilotonnes of CO₂ emissions. This scheme follows two earlier Dutch schemes approved by the Commission in July 2023 and July 2024, aimed at supporting the development of electrolyser capacity in the Netherlands.
The Commission assessed the scheme under EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union and the State Aid Framework for the Clean Industrial Deal.
The Commission concluded that the scheme is necessary and appropriate to facilitate the production of renewable hydrogen. It also concluded that the scheme has an incentive effect and a limited impact on competition and trade within the EU, and that the support will have positive effects - particularly by contributing to the objectives of the Clean Industrial Deal - that outweigh any potential negative effects in terms of distortions of competition. On this basis, the Commission approved the Dutch scheme under EU state aid rules.
