The Amsterdam Municipal Executive awarded the H2Avennet project with the subsidy from its Climate and Energy Fund. The funding will cover early-stage development and engineering, with total project costs yet to be disclosed.

Being undertaken by Alliander subsidiary Firan, the network will connect hydrogen importers, producers, and users, with hydrogen operating between 8 and 16 bar.

The network will link the port, the North Sea Canal, and the HoojTij industrial estate, targeting industrial hydrogen users. It could also feed into the Dutch national hydrogen network in the future.

Firan is currently in the design stage, with a final investment decision expected in 2026, before starting operations in 2028. Firan has not yet disclosed how many customers have committed to using the network.

Amsterdam’s Deputy Mayor Zita Pels said the network would help the port make “truly significant strides” in reducing carbon dioxide emissions.

“We hope the national government will also take responsibility in this regard,” she added.

Her comments come after a report by the Dutch Court of Audit warned the country’s national hydrogen network may never be built despite a €750m ($880m) subsidy due to low demand and rising costs.

“Precisely because so much public money is involved, the government must respond alertly if it is to operate more effectively and efficiently,” said Court of Audit board member Barbara Jozaisse.