AMSTERDAM, June 23 (Reuters) – The Dutch government on Friday said it will increase subsidies for the production of hydrogen from renewable sources of energy, known as ‘green hydrogen’, by 1 billion euros ($1.1 billion) next year and another 3.9 billion euros in the years after.

The Netherlands aims to have the capacity to produce at least 4 gigawatt of green hydrogen in 2030 and double that amount in 2032, depending on the availability of enough wind power, a strong enough electricity grid and sufficient demand from industry.

“We want to significantly increase hydrogen production in the Netherlands, which is indispensable for reaching our CO2 reduction targets”, Climate minister Rob Jetten said in a statement.

The Dutch government had earlier said it would earmark 9 billion euros in the coming decade for the rollout of green hydrogen, out of a total fund of 35 billion euros dedicated to funding the energy transition.

Out of this total, 300 million euros will be reserved for stimulating imports of green hydrogen, while options to subsidise industrial users for the transition to hydrogen and the use of it are being explored.

($1 = 0.9189 euros)

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