Netherlands invests €250 million in smaller electrolysis projects

The Dutch government is launching a subsidy scheme for smaller electrolysis projects aimed at producing green hydrogen. The amount of nearly €250 million is intended to provide 100 megawatts of electrolysis capacity, with the government hoping to assist in realising 5–10 smaller projects across the country.

To ensure that an increasing amount of renewable hydrogen is produced in the Netherlands, the government wants as many parties as possible to gain experience with water electrolysis. To achieve this, the government intends to make the available budget accessible to multiple projects, limiting eligibility to those with capacities of up to 50 MW. This approach aims to disseminate knowledge widely and allow lessons, including those related to technology and permitting procedures, to accelerate the development of subsequent projects.

All types of smaller projects are eligible for this subsidy scheme, provided they use electricity produced by wind or solar parks. These projects can, for example, supply hydrogen to local users such as gas stations, small industrial businesses, farms, or homes. Additionally, companies involved in these projects can help avert network congestion and use the hydrogen to store excess sustainable energy locally for future use.

Rob Jetten, Minister of Climate and Energy, said: “We are taking significant steps to realize the Netherlands’ ambitious hydrogen goals. I am very pleased that we can now also support smaller hydrogen projects. This should significantly enhance knowledge and experience in hydrogen production in the Netherlands.”

The winning parties will receive compensation to bridge the cost difference between renewable and fossil hydrogen. Projects can apply for the subsidy from late November onwards, and the winners will be announced in early 2024. To ensure swift project completion, one of the subsidy requirements is that the projects must be finished within four years, giving companies until 2028 to realise their electrolysis projects.

HTW Editorial Team

HTW Editorial Team

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