NortH2 welcomes the Hydrogen Pact

Hydrogen has a lot of support in the election manifestos published by the Dutch political parties. That is good news for the climate, the Dutch economy and the security of energy supply. The question is, can this shared vision also be translated into policy? On 4 March, a coalition of 38 organisations presented a Hydrogen Pact for the new government that will be formed after the election. This document clearly describes what is needed to get the hydrogen economy off the ground. According to NortH2 Project Leader Erik Mobach, NortH2 supports the coalition’s appeal: ‘We would like to add our voice to this appeal.’

Investment of 2.5 billion euros

According to the Hydrogen Coalition, an investment of 2.5 billion euros is needed over the next five years to finance the following:

• The construction and operation of 500MW of electrolysis capacity. After 2025, the further operation of this capacity will require additional support and a regulatory framework.
• The construction of the national ‘hydrogen backbone’ that connects the Dutch industrial clusters and provides access to four caverns for the storage of hydrogen.
• Developing the demand for and encouraging the switch to the use of low-carbon hydrogen by industry.

If the above financing is made available, the companies can in turn make the necessary investments to develop the hydrogen supply chain in the Netherlands that will make it possible to have 3 to 4GW of electrolysis capacity by 2030. This creates a flywheel effect, an accumulation of momentum. This can, for example, lead to a reduction in the investment costs of electrolysis of up to 65%.

NortH2 supports the appeal

Erik Mobach: ‘Investing in hydrogen is a win-win for the climate and the economy. Given this, we at NortH2 support the appeal from the Hydrogen Coalition for the new government to include a hydrogen pact in their coalition agreement. This will pave the way to realising an ambitious hydrogen value chain, taking the first steps this year already. NortH2 focuses on all parts of the value chain that are also mentioned in the appeal: wind energy for hydrogen, physically connecting industrial clusters and other countries, hydrogen storage and procurement. However, several matters first need to be addressed for this to happen. For example, the government must provide long-term clarity in order to stimulate the demand for green hydrogen and must take concrete action to develop the hydrogen economy in the Netherlands on a large scale. If the government does so, this will make it possible to scale up green hydrogen at the lowest cost to society. Furthermore, more offshore wind farms, specifically for hydrogen, are needed soon, in addition to those in the existing plans. We would like to add our voice to this appeal.’