The European Commission approved a 780 million euro ($900 million) Dutch state-aid scheme on Thursday, to accelerate renewable hydrogen production, supporting the construction of about 400 megawatts of electrolysis capacity.
The aid will be awarded through a competitive bidding process expected to conclude by the first quarter of 2027, the Commission said.
Support will combine an upfront grant covering as much as 80% of investment costs with a variable premium paid over five to 10 years.
The Netherlands estimates the scheme could incentivize production of up to 40 kilotonnes of renewable hydrogen annually, helping avoid around 324 kilotonnes of carbon dioxide emissions each year.
Beneficiaries will also be required to comply with European Union criteria for renewable fuels of non-biological origin, or RFNBOs.
The Commission ultimately found that the Dutch government measure met state aid requirements of being necessary and appropriate to facilitate renewable hydrogen production and entailing limited impact on competition and trade within the bloc.