Green hydrogen production faces significant challenges in terms of scalability and technological efficiency. Currently, electrolyser systems such as PEM and alkaline models require industrial-scale transformation to meet growing demand. “The limited availability of key materials like platinum and iridium restricts the ability to scale up production cost-effectively and efficiently,” explains Rostyslav Nykitenko, lawyer and Vice President of the International Relations Committee of the Ukrainian National Bar Association, to Energía Estratégica España.

Energy Efficiency and Infrastructure Challenges

Another critical hurdle is energy efficiency in the conversion and storage process. During electrolysis and hydrogen transport, significant energy losses occur, affecting competitiveness compared to other fuels. “Reducing these losses is essential for green hydrogen to scale across industrial and commercial sectors,” adds Nykitenko.

The country also faces infrastructure limitations. Although the Netherlands has a consolidated gas pipeline network, adapting it to transport hydrogen involves technical challenges and high costs. Projects such as the European Hydrogen Backbone aim to address this gap, but their implementation remains in the early stages.

Regulatory Barriers: Uncertainty and Delays

On the regulatory front, one of the main barriers is the ambiguous definition of green hydrogen within European frameworks. This lack of uniformity in classifications impacts subsidy allocation and international certification, creating uncertainty for investors. “The absence of global standards limits trade and cooperation, slowing sectoral progress,” notes Nykitenko.

Permitting processes are another recurring obstacle. Project implementation faces delays due to lengthy environmental assessments and, in some cases, local opposition. Combined with stringent safety regulations for handling and transporting hydrogen, this increases complexity and associated costs.

Success Stories: Innovation-Driven Leadership

Despite these challenges, the Netherlands has seen flagship projects that highlight its capacity to lead in the energy sector. The NortH2 project, led by Shell and its partners, aims to use offshore wind energy to produce green hydrogen on a large scale. This model combines technological innovation with international cooperation, solidifying the country’s position in the hydrogen economy.

Another notable example is the Hollandse Kust Noord offshore wind farm, which integrates renewable electricity production with energy storage. These initiatives not only reinforce the country’s commitment to sustainability but also provide a roadmap for other nations interested in green hydrogen development.

International Cooperation: A Shared Effort

The Netherlands plays a pivotal role in transnational initiatives aimed at enhancing renewable energy infrastructure and trade. Through the North Seas Energy Cooperation (NSEC), they collaborate with Germany, the UK, and other countries on offshore wind farms and interconnected electricity grids. “This collaborative approach not only reduces costs but also improves energy security across the region,” highlights Nykitenko.

Additionally, projects like Dogger Bank, the world’s largest offshore wind farm, demonstrate how cross-border cooperation can accelerate decarbonisation and deliver shared economic benefits.

Fiscal Policies: Attracting Multinationals

The Netherlands’ appeal goes beyond its strategic location; its fiscal policies are crucial in attracting international investments. The “Innovation Box” programme reduces taxes on profits derived from R&D activities to 9%, incentivising projects in energy storage and carbon capture.

“This fiscal structure allows companies to reinvest in emerging technologies, fostering innovation and strengthening global competitiveness,” states Nykitenko. Energy giants like Shell and Vitol have leveraged these policies to lead innovative initiatives, establishing the country as a hub for sustainable energy.

Consolidating Global Leadership

The Netherlands is uniquely positioned to lead the global energy transition. While it faces significant technical and regulatory challenges, its focus on international cooperation, technological innovation, and fiscal policies enables progress towards a sustainable energy model.

“The key to success lies in innovation and collaboration—essential elements to overcoming barriers and maximising opportunities in this expanding market,” concludes Nykitenko. As the country strengthens its infrastructure and implements uniform regulations for the hydrogen sector, it will solidify its leadership as a global reference in the energy transition.