Many MindedDutch hydrogen subsidies have yet to produce a single working electrolyser
In 2022 the Netherlands awarded €783.5 million in subsidies to seven green hydrogen projects, which were meant to deliver 1,150 MW of electrolysis capacity between them. Four of the seven, totalling 550 MW, have since been cancelled. None of the original seven is operating. Parliamentary answers dated 2 November put roughly €150 million as disbursed so far, so most of the award has not been spent.
The original decisions assumed renewable hydrogen would cost about €2/kg by 2030 and compete with fossil-derived hydrogen within a decade. The arithmetic is harsh: electrolysis needs about 50–55 kWh of electricity per kilogram, so power at €50/MWh costs €2.50–€2.75/kg before any other costs. The analysis calls that price a very cheap assumption, and large electrolysers would negotiate different contracts. The same parliamentary answers say the government cannot state when electrolytic hydrogen will be commercially viable without dedicated subsidies.
For energy abundance, this is a setback. Money committed has not become working capacity, so green hydrogen is not getting cheaper or more available in the Netherlands. The government's September energy planning also gives hydrogen a smaller role in building heat and power generation and projects much lower industrial demand. Its proposed response still includes more production subsidies, renewable hydrogen purchase obligations for some industrial customers, and support for a national pipeline network, with about €780 million reserved for a future round.
The pipeline is a further cost risk. The Court of Audit found estimated network investment rose from €1.5 billion to €3.8 billion, and Gasunie/Hynetwork Services estimated startup losses of up to €2.5 billion against a €750 million grant. Those are forecasts, not bills paid. This is an opinion piece by Michael Barnard in CleanTechnica, summarising his longer TFIE Strategy Briefing.
Source: CleanTechnica