Dutch cabinet takes double step: €450 million for Zuidwending hydrogen storage and a hydrogen market law

The Netherlands takes two significant steps forward towards a functioning hydrogen market. The Council of Ministers approved a €450 million investment in the first four underground hydrogen storage caverns at Zuidwending in Groningen. The same council agreed to submit a bill to the Council of State that sets out the rules for the Dutch hydrogen market. Both decisions were shared by Evert-Jan Brouwer, Head of Unit Hydrogen Policy.

€450 million for underground storage

The investment comes from the Climate Fund and goes to the HyStock project, set to become the Netherlands' first large-scale underground hydrogen storage. The operator is EnergyStock, a subsidiary of Gasunie. At Zuidwending, four salt caverns are being prepared to store hydrogen. Natural gas has been stored underground at this location for years, so much of the required knowledge and infrastructure is already in place.

With this contribution, the cabinet takes on several development risks that other investors are not yet willing to bear this early in the process. This gets the project off the ground at a stage when the market is still taking shape.

Hydrogen storage as a link in the energy system

In the future energy system, underground storage fulfils a role comparable to that of today's gas storage facilities for natural gas. Hydrogen is well suited to storing energy from solar and wind: at moments when there is plenty of renewable electricity, it can be converted into hydrogen and kept for later. Storage thus helps absorb fluctuations in supply and keep the energy system in balance.

Salt caverns are especially suited to this. They offer large volumes, seal well and allow rapid injection and withdrawal. Earlier research indicates concrete demand for a first cavern from around 2029. The current investment makes that timeline achievable.

A legal framework for the hydrogen market

The second decision concerns a bill that transposes the revised European Gas Directive into Dutch law. That EU directive, which must be transposed into national law by 5 August 2026 at the latest, sets common rules for the internal market in renewable gas, natural gas and hydrogen.

The bill governs the relationships between market parties, describes the role of the network operators and determines how supervision of the hydrogen market is arranged. This includes agreements on third-party access to the hydrogen network, transparent tariffs and a level playing field for new producers. The Council of Ministers is now asking the Council of State for advice. If all goes according to plan, the bill will go to the House of Representatives this autumn.

Why this matters

Storage and market rules together form the foundation of a mature hydrogen market. The national hydrogen infrastructure — with production, transport via the hydrogen network and now also storage — is coming together step by step. Reliable storage and clear rules give producers, buyers and investors the confidence to take the next steps.

For the wider energy transition, that is good news. Alongside battery-electric, hydrogen is a zero-emission solution that helps store renewable energy and make it available when solar and wind fall short. In this way, hydrogen complements the energy system where direct electrification falls short, from heavy industry to seasonal storage.

Sources:

• Evert-Jan Brouwer (Head of Unit Hydrogen Policy) – LinkedIn post on the cabinet decisions (July 2026)

• ANP / change.inc – Cabinet invests €450 million in underground hydrogen storage (HyStock, Zuidwending)

• Energiebuffer Zuidwending / EnergyStock – Developing a cavern for hydrogen storage

• Nationale Agenda Ondergrondse Waterstofopslag – HyStock realisation (energy-innovation.nl)

• EUR-Lex – Directive (EU) 2024/1788 on the internal markets for renewable gas, natural gas and hydrogen

• Internetconsultatie – Implementation Act decarbonisation package (explanatory memorandum)