The Netherlands needs to increase demand certainty for hydrogen through obligations and industrial decarbonisation strategies, according to a new International Energy Agency (IEA) report.
The European country must also secure investments in new electricity generation, reduce grid congestion and manage the transition away from natural gas, which has long been a cornerstone of its energy system, the IEA adds.
The Netherlands has set an ambitious target of increasing capacity from 5 GW today to 35 GW by 2035 and 70 GW by 2050, along with a 3-4 GW hydrogen electrolysis capacity target by 2030, and the government has allocated up to €7.5bn in support.
“This requires a stable framework for long-term offshore wind development in co-ordination with the build-out of hydrogen production, which will consume much of the electricity generated,” the report states.
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