Equinor Halts Dutch CCS-H2 Plans, Belgian Site Still On

Why It Matters

The decision underscores regulatory risk for CCS‑based hydrogen in Europe, potentially reshaping investment flows and decarbonisation pathways.

Key Takeaways

• Dutch CCS‑hydrogen project cancelled over policy and funding uncertainty
• Belgian H2BE project continues, targeting 210,000 tonnes annually
• EU Innovation Fund granted ~€160 million to each project
• RED III excludes CCS‑hydrogen, limiting market demand
• Equinor shifts focus to regions with clearer regulatory support

Pulse Analysis

Europe’s hydrogen strategy is at a crossroads as policymakers grapple with the balance between renewable and low‑carbon pathways. The EU Innovation Fund has become a critical catalyst, earmarking over €300 million for two Equinor projects that employ autothermal reforming paired with carbon capture. However, the revised Renewable Energy Directive (RED III) deliberately omits CCS‑derived hydrogen from its renewable definition, creating a demand vacuum that investors view as a red flag. This regulatory gap has forced firms to reassess the commercial viability of CCS‑hydrogen, especially in markets where renewable mandates dominate procurement contracts.

Equinor’s Dutch H2M Eemshaven plant was poised to deliver 210,000 tonnes of hydrogen per year, capturing 95 % of emissions, but the company halted the venture after the European Commission’s subsidy award failed to translate into a clear market pipeline. In contrast, the Belgian H2BE project, co‑developed with Engie, continues unabated, backed by a similar €159 million grant and a more favorable policy outlook in Flanders. The Dutch cancellation also reflects broader strategic setbacks, including the abandonment of a €4‑6 billion Norway‑Germany hydrogen pipeline, which Equinor cited as lacking sufficient demand under current EU rules.

The ripple effects extend beyond Equinor, signaling to the wider low‑carbon hydrogen sector that policy certainty is as vital as capital support. Investors are likely to prioritize jurisdictions with explicit CCS‑hydrogen incentives or integrated demand mechanisms, such as industrial clusters with carbon‑pricing schemes. For policymakers, the challenge lies in crafting a coherent framework that aligns the Innovation Fund’s objectives with market‑driven demand, ensuring that CCS‑based projects can complement renewable hydrogen rather than being sidelined. Clear, long‑term signals will be essential to unlock the next wave of investment in Europe’s decarbonisation agenda.

Equinor halts Dutch CCS-H2 plans, Belgian site still on

By Stefan Krumpelmann · 19 Feb 2026 14:29 GMT

Hamburg, 19 February (Argus) — Norwegian state‑controlled Equinor has scrapped plans to make hydrogen from natural gas with carbon capture and storage (CCS) in the Netherlands, but remains committed to a project in Belgium.

Equinor told Argus it has halted the Dutch H2M Eemshaven project because of “policy uncertainty and lack of funding,” but the Belgian H2BE project “is still on.”

H2M Eemshaven was due to make around 210,000 t/yr of hydrogen using autothermal reforming (ATR) technology to capture some 95 % of emissions. Equinor first announced the plans together with industrial‑gas firm Linde in early 2024 and later that year held an open season for potential offtakers. Last year, the European Commission granted the project €162.1 mn in subsidies from the EU Innovation Fund.

The H2BE plant in Ghent, which Equinor is developing with France’s Engie, would also make 210,000 t/yr using ATR technology. The project was selected for €159 mn from the EU Innovation Fund in 2024. Equinor said there are “no new updates” on the plans. It previously targeted financial close by April this year and start of operations by 2030.

Equinor has repeatedly criticised the EU’s focus on renewable hydrogen with regard to demand mandates. The bloc’s revised Renewable Energy Directive (RED III) is for renewable fuels of non‑biological origin only and does not cover CCS‑based low‑carbon hydrogen. This posed a “major restriction” to finding customers, Equinor said in late 2024, shortly after it abandoned plans for a hydrogen pipeline between Norway and Germany.

Regulatory uncertainty and a lack of clear demand contributed to the firm’s decision not to proceed with the €4‑6 bn pipeline project, Equinor said at the time, noting it could instead make more CCS‑based hydrogen in the Netherlands.

H2M Eemshaven is the latest CCS‑based hydrogen production plant in Europe to be halted, after several UK projects met the same fate in recent months.

Equinor said it “is committed to working with partners, governments, and stakeholders across Europe to advance low‑carbon hydrogen solutions where policy frameworks and demand are most robust.”