A €246 million (£212m) Dutch scheme to support the production of renewable hydrogen has been granted approval by the European Commission.

It will support the construction of at least 60MW of electrolysis capacity, with the state aid – in the form of a direct grant for a seven to 15-year period – awarded through a bidding process planned to end in 2023.

The tender will be open to all companies established in the European Economic Area and operating, or wishing to build and operate, a hydrogen production unit in the Netherlands.

The scheme will contribute to the Netherlands’ efforts to achieve 500MW of electrolyser capacity by 2025 and 3GW-4GW by 2030 and is expected to help avoid 55 kilotons of CO2 every year until 2030.

It will also support the EU’s ambitions to install at least 6GW of renewable hydrogen-based electrolysers and the production of up to one million tonnes of renewable hydrogen by 2024 and at least 40GW with a production of up to 10 million tonnes of domestic renewable hydrogen in the EU by 2030.

Margrethe Vestager, Executive Vice-President in charge of competition policy said: “This €246 million Dutch scheme is another example of how we work towards securing Europe’s decarbonised future. It will help ramping up the production of renewable hydrogen and facilitate the greening of sectors that are otherwise difficult to decarbonise.

“The aid will support the most cost-effective projects. And this while minimising possible distortions of competition.”