The Netherlands’ green hydrogen strategy isn’t keeping up

There are a number of short-term obstacles slowing down progress in the country

The Netherlands has been quite ambitious about its green hydrogen strategy as part of its energy transition, but it has been slowing down and failing to keep up with the pace required to meet its goals.

Despite aggressively moving forward at first, it is now lagging behind

The green hydrogen strategy targeted by the Netherlands is a considerable part of the Climate Agreement.  In it, it has supported a number of projects.  That said, those projects have been contending with a range of short-term obstacles that have been slowing down the ability to move forward at the expected rate.  A recent report by Invest-NL and Common Futures placed the spotlight on those challenges and how they are playing a role in this slowdown.

The report indicated that the high-cost price of renewable H2 when compared to gray H2, policy uncertainty and infrastructure availability have been among the top obstacles standing in the way of progress in the country. The report also pointed to the level of market transparency, which remains an obstacle that can have an impact but that hasn’t been on the radar of many reports when it comes to investment decisions. In the country, there is currently a closed market comprised primarily of gray H2. Traded prices and volumes lack transparency.

Transparency can also be a driver for green hydrogen strategy success

Transparency can be a powerful force in a market such as this one.  It can be an important driver for share development of renewable H2 in the overall market. By boosting transparency, it can support investment decisions, efficient pricing, and will draw fresh entrants who are interested in the use of H2 as a sustainability solution.

The report offered a solid overview of the short-term and long-term challenges faced by the market in the Netherlands, highlighting certain developments that can promote a more transparent market.

Is the Netherlands still among the leaders?

Despite the fact that its green hydrogen strategy progress has slowed recently, the country still holds a solid leadership opportunity in this market. Whether or not it succeeds at obtaining and holding onto that position will depend on how it manages the barriers standing in the way.