Can Europe’s Hydrogen Dream Finally Scale?

EU clears joint acquisition of Dhyve, signalling shift from pilot projects to industrial hydrogen production

30 Oct 2025

Europe’s hydrogen sector is entering a new stage of growth as Dutch investment firm DIF Management and Belgian energy group Virya Energy gain EU clearance to jointly acquire Dhyve, a Netherlands-based hydrogen producer.

The European Commission approved the deal under its simplified merger review (Case M.11829), concluding that it raised no competition concerns due to limited market overlap. The decision underscores a growing focus on scaling clean-fuel production beyond pilot projects.

DIF brings financial expertise in infrastructure, while Virya contributes experience in renewable hydrogen generation and distribution. Together, the two investors aim to expand Dhyve’s operations across Europe, supplying certified green hydrogen to industrial users, logistics networks and transport fleets.

People familiar with the plans said Dhyve is targeting around 500 megawatts of production capacity at sites in the Netherlands and Germany, scheduled to begin operations between 2027 and 2029. This would position the company among the continent’s larger independent producers and strengthen efforts to build viable supply chains for clean hydrogen.

Analysts view the move as part of a broader industry trend towards integration. Developers are increasingly combining production, distribution and offtake arrangements within a single corporate structure, aiming to make hydrogen business models more bankable and commercially sustainable.

Yet challenges persist. High production costs, inconsistent national policies and a lack of refuelling infrastructure continue to limit progress. Analysts caution that growth in hydrogen capacity must be matched by reliable end-user demand and coordinated regulation.

Even so, the partnership could influence pricing and supply stability, particularly for fleet operators seeking alternatives to diesel or battery-electric transport. If successful, the alliance may accelerate Europe’s shift toward large-scale hydrogen deployment.

The DIF–Virya venture marks a further step in the sector’s consolidation. As hydrogen projects move from fragmented experimentation to integrated operations, investors and policymakers will watch closely to see whether Europe can translate ambition into industrial performance.