The Netherlands is emerging as a global leader in the green hydrogen revolution, driven by aggressive policy frameworks and a strategic focus on decarbonizing energy-intensive industries. At the heart of this transformation is RWE’s Eemshydrogen project, a 50-megawatt electrolyser initiative in Eemshaven that exemplifies the intersection of public-private collaboration and long-term energy transition goals. For investors, this project—and the broader Dutch hydrogen ecosystem—presents a compelling case for capital allocation, provided they navigate the evolving cost dynamics and infrastructure challenges.
Policy-Driven Momentum: A Dutch Green Hydrogen Blueprint
The Netherlands has set ambitious targets to scale green hydrogen production, aiming for 500 MW of electrolyser capacity by 2025 and 4 GW by 2030 [1]. These goals are underpinned by a €700 million subsidy package for 11 new hydrogen projects in 2025 alone [2], with RWE’s Eemshydrogen initiative securing €124.9 million in government funding [3]. This financial backing is critical for de-risking early-stage projects, as green hydrogen remains costly compared to conventional alternatives. For context, production costs in the Netherlands currently exceed €13 per kilogram [4], driven by rising electricity prices and infrastructure bottlenecks. However, the Dutch government’s OWE subsidy scheme and the Sustainable Energy Transition Incentive (SDE++) are designed to bridge this gap, making long-term returns more attractive.
RWE’s Eemshydrogen: A Case Study in Strategic Execution
RWE’s Eemshydrogen project is a cornerstone of its “Growing Green” strategy, leveraging its Westereems wind farm to power a 50-MW electrolyser [3]. The project’s alignment with the Netherlands’ hydrogen backbone infrastructure—critical for transporting green hydrogen to industrial hubs like Delfzijl—positions it to serve high-value markets in chemical production and transport decarbonization [5]. A final investment decision (FID) is slated for Q4 2024, contingent on securing timely infrastructure connections [3]. If operational by 2027, the project could generate recurring revenue through long-term offtake agreements, a key factor in improving return on investment (ROI).
Comparatively, the Netherlands’ recent allocation of €250 million to seven green hydrogen projects highlights the competitive landscape [6]. RWE’s Eemshydrogen, receiving nearly half of this funding, demonstrates the company’s ability to secure top-tier support. However, investors must weigh this against rising infrastructure costs, such as the €3.8 billion price tag for Gasunie’s hydrogen transmission network [7]. These expenses underscore the need for robust cost management and regulatory coordination to ensure profitability.
Market Dynamics and Long-Term Viability
The global green hydrogen market is projected to grow at a 38.5% CAGR through 2030, reaching $60.56 billion [8]. In the Netherlands, transport accounts for 43.39% of current market revenue [8], a sector where RWE’s hydrogen could directly compete with grey hydrogen. While production costs remain high, PwC forecasts a 50% reduction by 2030, driven by electrolyser efficiency gains and renewable energy price declines [9]. For RWE, leveraging its existing wind assets and expanding into 2 GW of electrolysis capacity by 2030 [10] positions it to capture these cost reductions and scale economies.
Risks and Mitigation Strategies
Despite the optimism, challenges persist. Infrastructure delays, public acceptance hurdles, and the high upfront capital intensity of electrolyser projects remain risks [11]. RWE’s approach—securing permits, engaging offtakers, and aligning with national policy—mitigates some of these concerns. Additionally, the company’s revised €35 billion investment plan (down from €55 billion) reflects a disciplined focus on high-ROI projects [10], a prudent strategy in a capital-intensive sector.
Conclusion: A High-Conviction Play in a Transformed Energy Landscape
The Netherlands’ policy-driven hydrogen agenda, coupled with RWE’s strategic execution in Eemshydrogen, creates a compelling investment thesis. While near-term costs and infrastructure bottlenecks are real, the long-term trajectory—supported by government subsidies, technological advancements, and growing demand—suggests a viable path to profitability. For investors, the key is to balance patience with vigilance, ensuring that capital is allocated to projects with clear offtake agreements, regulatory alignment, and scalable infrastructure.
Source:
[1] Netherlands [http://gh2.org/countries/netherlands]
[2] 11 New Hydrogen Projects in Netherlands with €700M Subsidies [https://fuelcellsworks.com/2025/07/18/energy-development/netherlands-11-new-hydrogen-projects-with-a-value-of-700-million-in-subsidies-accelerate-development-of-sustainable-hydrogen]
[3] RWE receives grant for Eemshydrogen project to build 50-MW electrolyser [https://www.rwe.com/en/press/rwe-generation/2024-04-29-rwe-receives-grant-for-eemshydrogen-project-to-build-50-mw-electrolyser/]
[4] Dutch green hydrogen production costs exceed expectations – TNO study finds [https://ioplus.nl/en/posts/dutch-green-hydrogen-production-costs-exceed-expectations-tno-study-finds]
[5] Eemshydrogen [https://www.rwe.com/en/research-and-development/hydrogen-projects/eemshydrogen/]
[6] Netherlands awards almost €250m in subsidies to seven green hydrogen projects [https://www.hydrogeninsight.com/policy/netherlands-awards-almost-250m-in-subsidies-to-seven-green-hydrogen-projects/2-1-1635716]
[7] Gasunie’s Dutch Hydrogen Network Faces Delays, Costs Climb [https://fuelcellsworks.com/2025/07/21/green-technology/gasunie-s-dutch-hydrogen-network-hits-delays-costs-climb-to-3-8bn-but-commitment-and-state-support-hold-strong]
[8] Green Hydrogen Market Size, Share & Growth Report, 2030 [https://www.grandviewresearch.com/industry-analysis/green-hydrogen-market]
[9] Green hydrogen economy – predicted development of … [https://www.pwc.com/gx/en/industries/energy-utilities-resources/green-hydrogen-cost.html]
[10] RWE Hydrogen Initiatives for 2025: Key Projects, Strategies and Partnerships [https://enkiai.com/rwe-hydrogen-initiatives-for-2025-key-projects-strategies-and-partnerships]
[11] Unveiling complexity of hydrogen integration: A multi … [https://www.sciencedirect.com/science/article/pii/S0959652623040854]
