Hydrogen is becoming increasingly integral to global energy transition strategies, especially in sectors difficult to electrify. In the Netherlands, industrial clusters are expected to be key centers for sustainable hydrogen supply and demand. However, smaller industries outside the main clusters (Cluster 6) face significant challenges due to their distance from major demand points and the complexities of integrating hydrogen into their operations. They struggle with the high initial investment costs for on-site hydrogen generation, limited access to decarbonization subsidies, and the technical challenges posed by a congested electricity grid. The lower priority given to these regions in the hydrogen roll-out plan exacerbates the uncertainty and hesitancy among Cluster 6 industries, threatening the efficient development of regional hydrogen infrastructure and creating a risk of underutilization. The research employs a modeling approach and agent-based simulation to analyze the potential for collective action to overcome technical, economic, and institutional limitations, facilitating hydrogen production and consumption among smaller, dispersed industries. This approach allows for comparative analysis of emergent system behavior under different organizing principles, agent interactions, and government policy interventions. The simulation results highlight that collective investment is key to successful hydrogen transitions, with unified strategies leading to quicker and more effective outcomes. When driven by individual efforts instead of collective action, transitions tend to face delays and result with less sector inclusion. In regions with more hydrogen-dependent companies, contribution of collective action grows exponentially, with primary off-takers initiating the shift. However, relaxing subsidy criteria in such regional settings can weaken regional cooperation and slow progress. Therefore, designing region-specific policies that promote collaboration and encouraging communication and inclusiveness among companies can help achieve a smoother and more unified regional shift to hydrogen. Future research should address the limitations of the current study by incorporating more detailed cost-benefit analyses, exploring alternative hydrogen supply and transportation methods, and considering a broader range of factors influencing industrial decisions on hydrogen adoption.

Hydrogen is a crucial element in the transition to a sustainable energy system, with the Netherlands poised to use it in transportation, heating, and energy-intensive processes. Due to its existing gas infrastructure and strategic location, the Netherlands has the potential to become a leader in hydrogen technology, distribution, and trade. Despite numerous announcements and plans, the development of hydrogen distribution networks has yet to fully take off. European initiatives such as the European Hydrogen Backbone promote cross-border cooperation and hydrogen market formation. In the Netherlands, HyNetwork Services (HNS) is tasked with developing a national hydrogen network connecting major industrial hubs. However, at the regional level, no responsible parties have been appointed, and regulations are lacking. To develop efficient and effective regional hydrogen distribution networks, a clear regulatory framework is needed to provide stakeholders with security, clarity, and direction.

This research aimed to analyze the current and upcoming regulations influencing hydrogen distribution networks and to formulate possible reforms to accelerate their development. The main research question was: “How can regulatory frameworks influence the development of Dutch regional hydrogen distribution networks?” The research methodology involved a comprehensive literature review, stakeholder identification, and institutional analysis. The Institutional Analysis and Development (IAD) framework was employed to examine the regulatory context, while Institutional Grammar (IG) was used to simplify regulatory documents into institutional statements. Institutional Network Analysis (INA) provided a detailed map of these statements and their interactions. Data collection included document analysis and semi-structured interviews with key stakeholders from regulatory bodies, industry, and overarching organizations. These interviews offered crucial insights into the perspectives of actors in the Dutch hydrogen sector regarding current regulations, perceived barriers and drivers, and preferred changes or additions.

Key findings revealed that the primary regulatory documents governing hydrogen projects—the Environment and Planning Act, the Gas Act, and the Electricity Act—lack the specificity needed to support hydrogen network development. Upcoming regulations, such as the Energy Act and the EU Decarbonisation Package, emphasize integrating renewable energy sources, specifying roles in the future system, and laying the foundation for a hydrogen market. Stakeholders perceive the current regulatory environment as fragmented and insufficient, necessitating clearer guidelines and more supportive policies to reduce uncertainties and foster investment.

Identified barriers include the complexity of the permitting process, grid congestion, insufficient subsidy schemes, and the lack of norms and standards tailored to hydrogen. Conversely, drivers include the strategic importance of hydrogen in the energy transition, national and EU-level incentives, and hydrogen's potential to alleviate grid congestion and enhance energy security.

Based on document analysis and stakeholder interviews, several recommendations were made. These include simplifying the permitting process through increased flexibility in provincial ordinances, establishing a clear and robust subsidy scheme, implementing specific guidelines for hydrogen, and enhancing stakeholder collaboration. For regulatory bodies, it is advised to establish a dedicated national entity with Distribution System Operators (DSOs) to oversee hydrogen projects and streamline regulatory processes. DSOs should develop convincing development and investment plans, actively engage in the planning and development of hydrogen networks, and ensure regulatory alignment with energy transition goals.

The study also explored potential future strategies for regional hydrogen networks. These include the formation of independent hydrogen networks, expansion and integration of these networks into larger systems, and direct connections of regional clusters to the hydrogen backbone by DSOs. Addressing regulatory barriers and enhancing support mechanisms is essential for the Netherlands to lead in hydrogen technology and infrastructure development, contributing to national and global sustainability goals.