The Netherlands is positioning itself as a key player in the emerging European hydrogen market, but scaling up production and establishing a functional market are proving to be complex challenges. While the ambition is clear – to fully transition to sustainable energy sources by 2050 – the path forward requires navigating hurdles related to infrastructure, regulation, and technological maturity.
The Dutch Hydrogen Roadmap, published in November 2022 and prepared at the request of the Ministry of Economic Affairs and Climate Policy, initially aimed for 3-4 GW of electrolysis capacity by . However, recent discussions suggest a potential increase to 6-8 GW, reflecting growing consensus among policymakers. This ambition was highlighted in a recent debate with Minister for Climate and Energy Policy Rob Jetten, who emphasized the need to synchronize electrolysis capacity expansion with the development of wind and solar farms to meet current targets. This focus underscores the Dutch government’s commitment to green hydrogen
– hydrogen produced using renewable energy sources.
The Challenges of Scaling Electrolysis
Despite the increased ambition, scaling up electrolysis capacity isn’t straightforward. Several obstacles stand in the way. Protracted permitting procedures are a significant bottleneck, delaying project timelines. Establishing a stable hydrogen market is also crucial; without predictable demand and pricing, investment in production facilities becomes riskier. The role of blue hydrogen
– produced from natural gas with carbon capture – remains a point of contention. While some see it as a potential bridge to a low-carbon hydrogen economy, others prioritize direct investment in green hydrogen production.
Beyond market and regulatory issues, practical limitations exist. Insufficient manufacturing capacity for electrolyser components poses a supply chain challenge. Concerns surrounding health and safety risks associated with hydrogen production and handling also require careful consideration and robust safety protocols. These factors collectively highlight the complexity of transitioning from pilot projects to large-scale hydrogen production.
Market Regulation: Finding the Right Balance
The Roadmap recognizes that scaling up renewable and low-carbon hydrogen production requires not only mature technologies but also a well-functioning market. Finding the right balance between regulation and innovation is proving to be a delicate act. The principle of perfect is the enemy of good
is being applied, suggesting a pragmatic approach to market regulation – prioritizing progress over exhaustive perfection. This implies a willingness to adapt regulations as the market evolves and new challenges emerge.
European Context and Targets
The Dutch efforts are unfolding within a broader European framework. The European Commission aims for renewable hydrogen to cover around 10% of the EU’s energy needs by , significantly decarbonizing energy-intensive industries and the transport sector. Currently, hydrogen accounts for less than 2% of Europe’s energy consumption, with 96% of that produced from natural gas, resulting in substantial CO2 emissions. The EU’s REPowerEU Strategy, established in , set a goal of producing and importing 10 million tonnes of hydrogen each by .
The EU has established a comprehensive hydrogen policy framework, initially proposed in July as part of the ‘Fit for 55 package’. This framework includes binding targets for renewable hydrogen uptake in industry and transport, formalized in the revised Renewable Energy Directive which came into effect in . Guidance to support EU countries in implementing these targets was published in September , with a deadline for implementation set as May . The Hydrogen and decarbonised gas market package, in force since , aims to facilitate the development of dedicated hydrogen infrastructure and an efficient hydrogen market. Delegated Acts on hydrogen, adopted in June , further define criteria for renewable hydrogen
.
Geopolitical Implications
The shift towards hydrogen is not simply a fuel replacement; it represents a fundamental restructuring of the energy system with significant geopolitical implications. The transition will disrupt existing power dynamics and create new dependencies, requiring careful consideration of supply chains, resource availability, and international cooperation. The Netherlands’ ambition to become a major hydrogen player is therefore not just an energy policy decision, but also a strategic move within a rapidly evolving global landscape.
As of May , the Dutch hydrogen developments are still in a phase of active planning and infrastructure development. The success of the Dutch Hydrogen Roadmap will depend on overcoming the identified challenges and effectively leveraging the broader European policy framework to create a sustainable and competitive hydrogen market.
