The Dutch government has launched a subsidy scheme for smaller electrolysis projects for the production of hydrogen with sustainable energy. The scheme will provide €250 million in funding to support 5-10 projects of up to 50 megawatts in capacity.
The aim of the subsidy scheme is to help the Netherlands achieve its goal of having at least 4 gigawatts of electrolysis capacity by 2030. Electrolysis is the process of splitting water into hydrogen and oxygen using electricity. Renewable hydrogen produced using electrolysis can be used to decarbonize a wide range of industries and sectors, including power generation, transportation, and manufacturing.
The subsidy scheme is open to all types of smaller projects, as long as they use electricity produced by wind or solar parks. These projects can, for example, supply hydrogen to local users, such as filling stations, small industrial companies, farms, or homes. Companies can also use the hydrogen to store surpluses of sustainable energy locally for a later time.
The winning parties will receive compensation to close the cost difference between renewable and fossil hydrogen. Projects can apply for the subsidy from the end of November. The winners will be announced in early 2024. To ensure that the projects are completed quickly, one of the requirements of the subsidy is that they must be completed within 4 years. Companies therefore have until 2028 to realize their electrolysis project.
The Climate Agreement stipulates that the Netherlands will have at least 4 gigawatts of electrolysis capacity by 2030. Subsidy schemes such as the IPCEI or SDE++ already exist for larger hydrogen projects. A tender will also be opened for large hydrogen projects in the spring of 2024 with a budget of €1 billion. More information will follow in the coming months.
The Dutch government’s subsidy scheme for smaller electrolysis projects is expected to have a significant impact on the development of the hydrogen industry in the Netherlands. It will help to reduce the cost of renewable hydrogen production and make it more competitive with fossil hydrogen. The scheme is also expected to boost knowledge and experience with electrolysis in the Netherlands, which will accelerate the development of larger hydrogen projects in the future.
The development of the hydrogen industry has the potential to create jobs and boost economic growth in the Netherlands. It will also help to reduce greenhouse gas emissions and mitigate climate change.
The Dutch government’s subsidy scheme for smaller electrolysis projects is a significant step forward in the development of the hydrogen industry in the Netherlands. It is expected to have a positive impact on the economy and the environment, and it will help the Netherlands to achieve its goal of having at least 4 gigawatts of electrolysis capacity by 2030.