11 new hydrogen projects accelerate development of sustainable hydrogen
11 new projects with large electrolysers are being launched by companies in the Netherlands, which will produce sustainable hydrogen with the help of subsidies. Together, these electrolysers have a capacity of approximately 602 megawatts (MW). Refineries, the chemical industry, and fuel stations can use this hydrogen to further green their operations and reduce CO2 emissions.
Greening and accelerating
The electrolyser capacity of 602 MW is 3 times the size of the largest hydrogen plant currently under construction in the Netherlands. It is also enough to power 5,000 trucks for a year running on hydrogen. The companies receiving subsidies gain experience with the technology, permit procedures, and arranging certificates for their sustainable hydrogen. In this way, the subsidy aims to accelerate the development of sustainable hydrogen.
Companies receive over € 700 million in subsidies
The companies collectively receive over € 700 million in subsidies from the 2nd round of the Subsidy scheme for large-scale hydrogen production using an electrolyser (OWE). This subsidy is intended for companies building electrolysers of 0.5 MW or larger to produce sustainable hydrogen. These electrolysers generate hydrogen using renewable electricity.
Subsidy fund not fully exhausted
A total of nearly € 1 billion in subsidies was available. Companies applied for over € 3.2 billion in subsidies at the Netherlands Enterprise Agency (RVO). Applicants who did not receive funding often failed to sufficiently demonstrate that the hydrogen they produce would actually be used. Projects that were economically unfeasible or could not be completed on time also did not receive subsidies.
Which companies received subsidies?
The companies awarded OWE subsidies are:
- Air Liquide Industrie (Rotterdam)
- Circul8 Waterstof Fabriek (Lelystad)
- Den Tol Duurzaam (Gendringen)
- Essent Hydrogen (Deventer)
- Eurus Energy Europe (Veendam)
- FR Energyhubs (Steenwijk)
- H2Eron (Delfzijl)
- Statkraft Renewables Benelux (Den Helder)
- Uniper Hydrogen Netherlands (Rotterdam)
- Vattenfall (Eemshaven)
- Westfalen Waterstof (Zutphen)
Why this subsidy?
The OWE subsidy reduces the cost gap between producing sustainable hydrogen and fossil hydrogen for companies. This cost difference is known as the “unprofitable top.” To determine which companies receive subsidies, RVO ranked applicants based on the subsidy requested per MW of electrolyser capacity and previously received subsidy. This creates competition between projects and ensures that the most cost-efficient projects receive funding.
The average subsidy amount for the 11 winning projects is € 1.78 million per MW of electrolyser capacity. Based on the total requested subsidy and previously received subsidy, divided by the total capacity, the subsidy per MW amounts to € 1.59 million. Companies have until mid-2030 to complete their projects.
- Ministry of Climate Policy and Green Growth
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