The European Commission has approved a €780 million Dutch state aid scheme to support the production of renewable hydrogen, under EU State aid rules and the Clean Industrial Deal State Aid Framework (CISAF).

According to the European Commission, the scheme is expected to support the construction of around 400 MW of electrolysis capacity in the Netherlands and incentivise the production of up to 40 kilotonnes of renewable hydrogen per year. The resulting hydrogen production is estimated to avoid around 324 kilotonnes of CO2 annually.

Competitive bidding planned for 2027

The aid will be awarded through a competitive bidding process, which is planned to be concluded by the first quarter of 2027.

The support will take the form of a direct grant combining an upfront investment grant covering up to 80% of investment costs with a variable premium paid over five to 10 years.

Companies receiving the aid will have to demonstrate compliance with EU criteria governing the production of renewable fuels of non-biological origin (RFNBOs), as established under the EU delegated acts on renewable hydrogen.

Third Dutch scheme approved for electrolysis

The Commission said the scheme follows two previous Dutch State aid schemes approved in July 2023 and July 2024, both aimed at supporting the development of electrolysis capacity in the Netherlands.

The new scheme was assessed under Article 107(3)(c) of the Treaty on the Functioning of the European Union and the CISAF, which was adopted by the Commission on 25 June 2025 as part of the EU's Clean Industrial Deal framework.

Commission finds aid necessary and proportionate

The European Commission concluded that the Dutch scheme is necessary and appropriate to facilitate renewable hydrogen production.

It also found that the measure has an incentive effect and a limited impact on competition and trade within the EU. According to the Commission, the positive effects of the scheme, particularly its contribution to the objectives of the Clean Industrial Deal, outweigh any potential negative effects resulting from distortions to competition.

On this basis, the Commission approved the Dutch scheme under EU State aid rules.

The non-confidential version of the Commission's decision will be published in the EU State aid register under case number SA.122432, once confidentiality issues have been resolved.