Government allocates € 9 billion to green hydrogen

Hydrogen is increasingly seen as an essential link in the transition to a climate-neutral economy. The government is therefore taking major steps to accelerate the hydrogen market — on both the production and demand sides.

Billions for electrolysis capacity

The government has announced that it will earmark about € 9 billion to scale up hydrogen production. An initial tranche of € 1 billion will be used for large-scale electrolysis, on top of existing subsidy schemes. A further € 3.9 billion will follow in subsequent years to expand capacity further.

In addition, € 1.8 billion will go towards offshore electrolysis — directly converting offshore wind energy into hydrogen — and € 250 million will be made available for storage in salt caverns.

Mandatory use in industry

Alongside increasing production, demand is also being addressed. The plan is to gradually require industry to purchase more renewable hydrogen. The first few years will serve as a test phase, allowing supply to grow in step without unnecessary price increases. Options under consideration include tradable obligations and flexibility between years.

Subsidies and conversion

To make the switch to green hydrogen more attractive, subsidies are being considered for the investments needed to convert installations. This will keep costs manageable for businesses making the switch.

Imports and international cooperation

As not all the hydrogen required can be produced locally, imports are also a priority. Through the H2Global mechanism, € 300 million is being invested in imports of green hydrogen and ammonia from abroad.

What does this mean for your business?

The hydrogen transition brings both opportunities and obligations for industrial companies.

Would you like to know how best to prepare for the changing energy market? Contact us for a free consultation.