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Subsidy scheme for large-scale hydrogen production using an electrolyser (OWE)

Last checked on:
11 September 2024
Published on:
19 August 2024

Would you like to produce renewable (sustainable) hydrogen using an electrolyser? And does this electrolyser have a production capacity of at least 0.5 megawatts? Then apply for a subsidy under the scheme for large-scale hydrogen production using an electrolyser (OWE).

Budget and application period

Start date:
Tuesday 15 October 2024
09:00 (CEST)
End date:
Thursday 31 October 2024
17:00 (CET)
Total budget:
€ 998,330,000
Additional Information:
This subsidy is the successor to the 2023 subsidy scheme entitled ‘Scaling up fully renewable hydrogen power generation using electrolysis’ (OWE). We will continue to use the abbreviation ‘OWE’ for this.

Who is eligible?

This subsidy is for companies that build and use hydrogen power generation facilities to produce renewable hydrogen. For this you use an electrolyser that has a production capacity of at least 0.5 megawatts. 

The subsidy will only be granted if you produce fully renewable hydrogen with your eletrolyser. Projects that have already been given subsidies for the SDE++ scheme or the OWE scheme of 2023 will not be granted a subsidy. 

What are you given a subsidy for?

You are given a subsidy for the investment costs of your power generation facility (i.e. the investment part). And for producing the hydrogen using this facility for at least 5 and at most 10 years (i.e. the operating part). 

You calculate your subsidy amount for the investment and operating part using the ‘Investment budget and feasibility study’ model. This model is available on the Applications page under the ‘Substantiate the feasibility of your project’ drop-down menu. We explain the calculations below.

The figure gives an example of how the subsidy scheme for large-scale hydrogen production may be higher in one year than in another.

Conditions for this subsidy scheme

Check whether your application complies with these conditions:

  • You may only apply for up to half of the available subsidy. That is € 499,165,000.
  • The total subsidy amount for investment and operation is up to € 9 per kilogram of fully renewable hydrogen. The subsidy amount of €9 per kilogramme is derived from the maximum of € 1,000 in subsidy per each ton of carbon dioxide not produced. More information about subsidy amounts is available under ‘What are you given a subsidy for?’.
  • You may determine the operating period of the subsidy (rounded to whole years), as long as it is a minimum of 5 and a maximum of 10 years.
  • You may submit one application for each site.
  • You may not yet make commitments that cannot be reversed for the facility itself. This means that you:
    • do not yet make any payments for the facility;
    • you do not sign for any final awarding of the contract. However, you are allowed to sign an awarding of the contract on the condition that you get the requisite subsidy;
    • you may not begin to carry out the activities listed in your project plan.
  • You may not be dependent on other subsidies. You are applying for this subsidy to make your project financially feasible. In doing so, you should not be dependent on other subsidies that you have yet to receive. You may not combine this subsidy scheme for large-scale hydrogen production using an electrolyser with the Sustainable Energy Production and Climate Transition Incentive Scheme (SDE), a previously received subsidy scheme for large-scale hydrogen production using an electrolyser or the energy investment allowance (EIA). Combining it with other subsidies, such as a subsidy for the ‘Important Project of Common European Interest’ (IPCEI), is possible under this subsidy scheme for large-scale hydrogen production if it does not interfere with the other subsidy.

Requirements for the power generation facility

Your power generation facility must meet the following requirements:

  • Your facility must have a nominal electrical input power of at least 0.5 megawatts.
  • The nominal electrical input power of the electrolyser is the direct current input power of the electrolyser at the beginning of its useful service life. 
  • Your facility may be linked to a wind or solar electricity generation plant using a direct line. The facility may also be connected to the electricity grid with a connection (i.e. it is a grid-connected facility). A combination of both is also possible.
  • The hydrogen has to be fully renewable. The requirements may differ depending on the connections mentioned above. The requirements for this are set out in Delegated Act (EU) 2023/1184. 
  • If your facility is able to produce non-renewable hydrogen, then the reduction in the emission of greenhouse gas from the hydrogen produced must be at least 70%. This requirement is set out in Delegated Act (EU) 2023/1185.
  • If the pressure of the hydrogen in your plant increases to a maximum of 70 bar, the subsidy covers the costs of the compressor. Compression to an extremely high pressure is intended for storage and transport, and is therefore not covered by the subsidy.
     

Questions or advice?

If you have any questions about this subsidy or you need advice, then send an email to owe@rvo.nl.

We have gathered several questions and answers (in Dutch). Based on these we will further complete the pages.

How does the subsidy work?

This subsidy is being put out to tender. That means that the companies compete for the available subsidy. The projects that get the highest score will get the subsidy. We do this based on a ranking. The ranking is determined based on the amount of subsidy you apply for, including previously received subsidy in proportion to the electrical input power of your electrolyser. We refer to this as the ranking amount. You are therefore more likely to get a subsidy if you apply for a lower subsidy amount per megawatt of your electrolyser’s nominal power rating. The lower the amount, the more likely you are to get a subsidy.

A calculation tool is given on the Applications page, which you can use to calculate your ranking amount.

Applications

Apply for this subsidy from 15 October, 9:00 until 31 Ocotober, 17:00. Check the steps for the application process.

After your application

After submitting your application, you will be sent a letter stating the decision. If your subsidy is awarded, the letter will state the following: 

  • the maximum subsidy amount for the investment part; 
  • when you will receive the advances; 
  • the maximum amount of your subsidy for the operating part; 
  • for how long you will be given the subsidy (period of the subsidy).

If your subsidy application has been approved, and you begin implementing your project, or you would like to know what the implementation phase involves, then consult the Implementing your project page, where you will find all the relevant information. 

Advance payments and adjustments

You will receive subsidy advances for the investment part two weeks after you start building your facility. For the operating part, you will receive the subsidy once you have put the facility into operation. Your facility also has to be permanently registered with VertiCer. All the information about this is on the Producing hydrogen using your facility page.

Where are these regulations laid down in the law?

The scheme was published in the Government Gazette on 19 August 2024. We have based the information about this scheme on the following legislative texts (in Dutch):

The requirements to be met when producing fully renewable hydrogen can be found in the following delegated acts:

Reference works

For this scheme, we held a market consultation this year. The following downloads contain more information on this (in Dutch).

About this subsidy scheme

In an effort to meet climate targets, the government’s intention is to encourage the production of renewable hydrogen. Renewable hydrogen is produced with electricity generated by solar and wind power. Large electrolysis plants are needed to make the required amount of hydrogen. The purpose of this subsidy scheme is to make the investment in and operation of electrolysis plants financially attractive.

This subsidy scheme for large-scale hydrogen production using an electrolyser (the OWE scheme) is a combination of a subsidy for the investment phase and a subsidy for the operating phase. In other words, you get a subsidy for the investment costs for building the facility, and to produce hydrogen using this facility (i.e. the operation phase) to make it profitable for a minimum of 5 and a maximum of 10 years.

Commissioned by:
  • Ministry of Climate Policy and Green Growth
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