The European Commission has approved, under EU State aid rules, a €780 million Dutch scheme to support the production of renewable hydrogen, in line with the Clean Industrial Deal objectives. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.
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 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 with aid under the scheme, 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. This scheme follows two previous Dutch schemes approved by the Commission in July 2023 and July 2024, which aimed to support the build out of electrolysis capacity in the Netherlands.
The Commission assessed the scheme under EU State aid rules, specifically Article 107(3)(c) of the Treaty on the Functioning of the European Union, and the Clean Industrial Deal State Aid Framework.
The Commission found that the scheme was necessary and appropriate to facilitate the production of renewable hydrogen. In addition, the Commission found that the scheme has an incentive effect, a limited impact on competition and trade within the EU, and that the aid will bring about positive effects, in particular by contributing to the objectives defined in the Clean Industrial Deal, that outweigh any possible negative effects in terms of distortions to competition. On this basis, the Commission approved the Dutch scheme under EU State aid rules.
