The Dutch government has introduced a generous subsidy scheme dedicated to supporting smaller electrolysis projects. With a substantial fund of nearly €250 million, the scheme is expected to facilitate the creation of 100MW of electrolysis capacity.
The primary objective of this initiative is to catalyze the development of 5 to 10 smaller-scale hydrogen projects spread across the nation. By limiting eligibility to projects with a capacity of up to 50MW, the government aims to maximize participation, thereby fostering widespread knowledge dissemination and the sharing of invaluable lessons in technology deployment and permitting procedures.
Under this subsidy scheme, all types of smaller projects are eligible, provided they utilize electricity generated from wind or solar parks. These projects hold the potential to supply locally-produced hydrogen to various end-users, including filling stations, small industrial enterprises, farms, and residential homes. Moreover, they offer a means to mitigate grid congestion and store excess renewable energy for future use, bolstering the transition to sustainable energy sources.
Rob Jetten, the Climate and Energy Minister, expressed enthusiasm for this development, stating, “We are taking major steps to realize the major hydrogen ambitions in the Netherlands. I am very pleased that we can now also support smaller hydrogen projects. This should give the knowledge and experience with hydrogen production in the Netherlands a big boost.”
Starting at the end of November, prospective projects can apply for this subsidy, with the winners set to be announced in early 2024. To expedite project realization, one of the stipulations of the subsidy is that all projects must be completed within four years, providing companies with a deadline of 2028 to realize their electrolysis endeavors.
This initiative aligns with the Netherlands' commitment, as outlined in the Climate Agreement, to establish a minimum of 4GW of electrolysis capacity by 2030. For larger hydrogen projects, existing subsidy schemes such as the Important Project of Common European Interest (IPCEI) or the Sustainable Energy Production Incentive Scheme (SDE++) remain available options.
Furthermore, the government is poised to open a tender with a substantial budget of €1 billion in the spring of 2024, specifically targeting large-scale hydrogen projects.
