Government support for scaling up hydrogen production

Hydrogen Production

Good news for Groningen! The government announced this week it will invest millions to scale up the production of green gas and hydrogen. Minister of Economic Affairs and Climate Policy Eric Wiebes informed the government of measures and subsidies to support large scale, affordable and sustainable production.

A month ago, Groningen Seaports, Shell Netherlands and Gasunie announced plans to make the Eemshaven in Groningen the center of green hydrogen production in Northwest Europe, so this is great news for Groningen. The minister will also make millions available for pilot projects for efficient and sustainable production and especially mentions the Groningen region in his plans, for its contributions to transitioning to hydrogen. 

Minister Wiebes will not only give Gasunie an important role in the production, storage and distribution of green hydrogen, but possibly also for shaping and creating the hydrogen market. Wiebes sees opportunities to reduce the price by 50 to 60 percent in the coming years. He wants to help stimulate the future market by mandating adding a percentage of hydrogen to natural gas.

The consortium of Gasunie, Groningen Seaports and Shell Nederland announced they intend to launch the NortH2 project: the production of green hydrogen using renewable electricity generated by a mega offshore wind farm, 3 to 4 gigawatts in 2030, and 10 gigawatts by 2040. Green hydrogen production, initially in the Eemshaven and later possibly also offshore, is expected to be around 800,000 tonnes per year by 2040. This would be sufficient to meet the current electricity consumption of some 12.5 million Dutch households.

Photo credits: Bas Meelker