The Stimulation of Sustainable Energy Production and Climate Transition (SDE++) has been granted to VoltH2 by the Netherlands Enterprise Agency (RVO) and the Dutch Ministry of Economic Affairs and Climate Policy (EZK) in order to stimulate the production of green hydrogen.
The main subsidy tool used by the Dutch government to encourage the generation of renewable energy and CO2 reduction is SDE++. In 2020, the production of green hydrogen was covered by SDE++. For the first time, VoltH2 is receiving a subsidy for units that provide industrial-scale manufacturing.
As stated, the quantity of green hydrogen produced and the resulting decrease in CO2 emissions determine the amount of the subsidy paid. The grant, which is distributed throughout the first 15 years that the green hydrogen plant is in operation, provides a significant boost to turnover.
According to VoltH2, the funding will go toward the company’s initiatives in Terneuzen and Vilssingen, respectively. From the second quarter of 2022, the two green hydrogen factories have been operating under environmental permits.
With the addition of SDE++ functionality, the projects are now one step closer to completion. Construction of the plants is anticipated to begin at the latest in early 2024 following the final investment decision (FID).
According to VoltH2, the two projects feature a green hydrogen plant with an approximate 25 MW capacity that will electrolyze water to produce 2,000 tonnes of green hydrogen per year. The second phase will allow for the capacity of both plants to be increased to 100 MW, allowing for the annual generation of 8,500 tonnes of green hydrogen.
As comparison to the typical fossil-based method of producing hydrogen, it is predicted that a reduction in emissions of 9 kg CO2 per kg hydrogen can be reached starting in 2025. (grey hydrogen).
