Green hydrogen has emerged as a vital component in the global effort to transition to sustainable energy systems. As a financial institution supporting energy transitions worldwide, Invest International views hydrogen as essential for decarbonizing hard-to-electrify sectors and fostering sustainable economic development. It also presents a significant opportunity for Dutch businesses to lead in innovation while contributing to Europe’s renewable energy goals.
Recent discussions, including those during European Hydrogen Week 2024 and the December Network Event of the Dutch National Hydrogen Program, have shed light on the challenges and opportunities in scaling green hydrogen adoption. Key themes included the urgency of robust regulatory frameworks, the importance of the right support schemes, including subsidies, market creation and transparency, and the necessity of international collaboration especially on financing. These insights provide a roadmap for advancing hydrogen’s role in the energy transition.
Insight 1: Hydrogen is Here to Stay—But Needs Stronger Support
During the European Hydrogen Week, one key theme was clear: hydrogen is here to stay. It’s no fleeting trend but a vital part of the energy transition. Compared to the ambitious targets set a few years ago—such as the EU’s goal of using 20 million tons of hydrogen annually by 2030 (10 million tons produced within the EU and 10 million imported)—progress has been slower than anticipated. This shortfall is largely due to challenges on the offtake side, as insufficient demand hinders production scale-up.
During the panel debate Implementing the Green Deal targets for sustainable demand, Dr. Sopna Sury, Chair of the Hydrogen Europe Association, addressed these issues directly. She emphasized the need for long-term policy commitments and highlighted the stark cost disparity between green hydrogen (produced from renewable electricity) and grey hydrogen (derived from fossil fuels). Green hydrogen remains three times more expensive, making support schemes and subsidies essential for competitiveness. A country like Japan, for instance, provides consistent support schemes and subsidies, creating a favorable environment for investment and market creation. Europe, including the Netherlands, in contrast, is not at that level yet, leaving businesses hesitant to take risks.
Dr. Sury stressed the urgency of government action to provide stability and confidence for the sector. Without reliable frameworks, scaling green hydrogen to meet EU goals will remain a challenge.
Insight 2: Moving Beyond the Hype—Collaboration Takes Center Stage
As the initial excitement around green hydrogen fades, the focus has shifted to collaboration and action. This was a key theme during the session Financing the Future: Energizing Coordination for Green Hydrogen Finance in the Global South, at the European Hydrogen Week.. Representatives from the World Bank, European governments like Germany, the Netherlands, and Austria, and the European Commission highlighted the need for stronger coordination to address the high cost of capital in the Global South.
While green hydrogen presents opportunities for industrialization and job creation in emerging markets, financing bottlenecks hinder progress. Participants emphasized the importance of aligning policies and creating informal platforms for regular dialogue to streamline funding efforts.
Collaboration, they agreed, is no longer optional but essential to bridging investment gaps and ensuring the viability of green hydrogen projects worldwide. The message was clear: it’s time to move beyond talk and take action together. Invest International will actively contribute to this effort under guidance of the World Bank, in collaboration with the Dutch Ministry of Foreign Affairs.
Insight 3: Market Clarity is Crucial—Innovative Tools Offer a Path Forward
At European Hydrogen Week, market creation emerged as a key focus to address current gaps in the hydrogen industry. Discussions emphasized the need for tools and frameworks to connect hydrogen demand and supply, link stakeholders with financial support, and gather interest in infrastructure and storage projects.
By enabling producers and offtakers to signal future plans, such initiatives could help address critical uncertainties, such as whether industries like shipping will transition to ammonia or methanol. Clarifying market dynamics is crucial for facilitating better decision-making and guiding investment strategies.
Market making through creating market demand, was also a topic of great interest and enthusiasm at the Network Event of the Dutch National Hydrogen Program. The price difference (‘green premium’) is much smaller and could be manageable – at the end of the value chain, eg. in a final product using green steel, green ammonia, e-SAF etc. How can such end demand be created and contribute to the feasibility of green hydrogen projects. We wish and look forward to see the topic of market making and demand creation high on the 2025 agenda and contributing to some concrete initiatives in this field.
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Green hydrogen represents a transformative opportunity for the global energy transition, but scaling its adoption requires overcoming significant challenges. From strong policy support to fostering collaboration and enhancing market transparency, these insights highlight actionable steps to unlock hydrogen’s full potential. These insights align with Invest International’s mission to support clean energy projects that drive sustainable impact globally. Learn more about our Clean Energy sector and how we’re accelerating the energy transition toward a greener, more inclusive future.
