€250 million for several small hydrogen projects for maximum learning effect.
The government is launching a subsidy scheme for smaller electrolysis projects for the production of hydrogen with sustainable energy. The amount of almost €250 million should provide 100 megawatts of electrolysis capacity. The government hopes to use this money to help realize 5 to 10 smaller projects throughout the country, so that several companies and local authorities can gain experience with electrolysis.
To ensure that more and more renewable hydrogen is produced in the Netherlands, the government wants as many parties as possible to gain experience with electrolysis (the process for making renewable hydrogen). To achieve this, the government wants several projects to be able to use the available budget; therefore, only projects up to 50 megawatts are eligible. In this way, knowledge is widely distributed and lessons with, among other things, technology and licensing procedures can accelerate the development of subsequent projects.
All types of smaller projects are eligible for this subsidy scheme, 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. With these projects, companies can also help prevent grid congestion and use the hydrogen to store surpluses of sustainable energy locally for a later time.
Related story: Dutch Government Commits Additional Billions for Scaling Up Renewable Hydrogen Production
Minister Jetten (Climate and Energy): “We are taking significant steps to realize the major hydrogen ambitions in the Netherlands. I am very happy that we can now also support smaller hydrogen projects . This should give a significant boost to the knowledge and experience with hydrogen production in the Netherlands.”
The winning parties will receive compensation to close the cost difference between renewable and fossil hydrogen (the unprofitable top). 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 the projects are 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.
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