CISAF: Commission approves EUR 780 million State aid scheme to support renewable hydrogen production in the Netherlands

This scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF). The aid will be awarded through a competitive bidding process planned to be concluded by the first quarter of 2027. It will take the form of a direct grant combining an upfront investment grant of up to 80% of the investment costs with a variable premium paid over five to 10 years. Beneficiaries will have to prove compliance with EU criteria for the production of renewable fuels of non-biological origin (RFNBOs), as set out in the delegated acts on renewable hydrogen.

The Netherlands estimates that around 400 megawatts of electrolysis capacity will be constructed, and that the scheme will incentivise the production of up to 40 kilotonnes of renewable hydrogen a year, resulting in around 324 kilotonnes of CO₂ avoided annually.

The Commission assessed the scheme under Article 107(3)(c) TFEU and CISAF, and found that it is necessary and appropriate, having an incentive effect and a limited impact on competition and trade within the EU.

The decision will be made available under the case number SA.122432 in the State aid register.

For more information see the Commission’s PR.