Advice of the Week #4

Stimulate green hydrogen production by opting for tenders with subsidies

What do we mean by this? Hydrogen will play an important role in making the Dutch energy system more sustainable. Hydrogen can replace natural gas in production processes that are difficult to electrify. The goals for green hydrogen are ambitious: 4 GW in 2030 and 8 GW in 2032, while current production is virtually zero. However, companies do not dare to make investment decisions if the unprofitable top of hydrogen has not been covered. We can reduce costs by introducing a production subsidy that allows hydrogen to compete with other forms of energy. In addition, we must create the right preconditions, such as clear permitting processes and the construction of infrastructure. In short: stimulate investments in and production of green hydrogen by providing subsidies.

Why now? In the next two weeks, Members of Parliament will discuss the final National Energy System Plan (NPE). In the NPE, the government describes its vision for the energy system of 2050. There is a lot to consider. For example, the NPE states that we must focus on maximum supply and smart use of the electricity infrastructure. The desired developments for electricity, heat, hydrogen and carbon are also described. Energie-Nederland encourages this all-encompassing vision of the future Dutch energy system. It is important not only to make plans, but to implement and execute existing plans. Only concrete actions ensure that we accelerate sustainability.

*One of the 10 recommendations that Energie-Nederland sent to the new Members of Parliament. In the coming period, we will highlight these one by one, depending on current events.

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