The Dutch Cabinet has announced it is making €450 million available for the construction of the Netherlands' first large scale underground hydrogen storage facility: Gasunie’s Project HyStock in Zuidwending. This ensures that the Netherlands has sufficient hydrogen storage capacity in time. Minister Van Veldhoven (Climate and Green Growth) sent the decision to the House of Representatives on 3 July 2026.
Importance of the investment
The Netherlands is committed to making the energy system more sustainable, while simultaneously aiming to maintain a strong position as an energy and industrial nation in Europe. Hydrogen plays a crucial role in this. For a well-functioning hydrogen chain, it is necessary that production, transport, use, and storage are developed simultaneously.
With this investment, the Cabinet prevents storage from becoming the weak link in the chain. It is a concrete step to increase the security of energy supply and prepare the Netherlands for a future with sustainable hydrogen.
Stientje van Veldhoven, Minister of Climate and Green Growth, commented: “A sustainable energy system is built in conjunction. That is why we are now also investing in hydrogen storage. In this way, we ensure that clean energy is available when we need it, strengthen our energy security, and create the preconditions for an innovative and competitive economy.”
A well-functioning hydrogen market stands or falls with sufficient storage capacity. Deep underground storage makes it possible to keep hydrogen produced in abundance during peak periods available for times of scarcity. Without storage, production, transport, and consumption become unbalanced, making it difficult for the market to develop.
Moreover, the realisation of underground hydrogen storage requires a great deal of time: from initial plans to commissioning, it easily takes 10 to 15 years. Because the hydrogen market is still in an early phase, parties are currently unable or unwilling to bear these risks entirely independently. That is why the Cabinet is supporting this development precisely now.
HyStock in Zuidwending
In Zuidwending, four underground salt caverns are being constructed to store hydrogen. Additionally, installations are being built to pump hydrogen into and out of the caverns. The location was chosen due to existing experience with underground gas storage and good connectivity to the national hydrogen network.
Risks that are covered
The cabinet's contribution is aimed at three concrete risks that a typical investor is currently unwilling to bear, namely the uncertain price of so-called pillow gas, the risk that storage will not be sufficiently filled in the first few years, and potential delays due to permits. It is therefore not a guarantee against unexpectedly high construction costs or a license for entrepreneurial risks; HyStock remains responsible for the proper execution of the project.