SDE++: Low carbon production
Do you want to apply SDE++ subsidy for electrolytic hydrogen production, carbon capture and storage, carbon capture and use in greenhouse horticulture or advanced renewable fuels? On this page you will find the general conditions for low carbon production and the technology-specific application conditions.
Electrolytic hydrogen production
For electrolytic hydrogen production you can apply in 3 categories:
Hydrogen is still mostly produced from natural gas in a furnace because this is cost-efficient. But producing hydrogen through electrolysis using renewable electricity reduces CO2 emissions. A system can receive a subsidy if the hydrogen production capacity is at least 500 kW.
Just like in previous years, there is a category for hydrogen production through electrolysis connected to the electricity grid. The SDE subsidy is only for the production of fully renewable hydrogen. If your installation produces both fully renewable and partly non-renewable hydrogen, you will only receive a subsidy if the total hydrogen produced reduces greenhouse gas emissions by at least 70%.
You must have Garantees of Origin
You must also prove that you have Guarantees of Origin for the renewable electricity used, from wind or solar energy. You must also write off these Guarantees of Origin. To show that the hydrogen is fully renewable, the project must also meet the other 'additionality' conditions from the delegated regulations. You must report on this every year.
'Additionality' means that the hydrogen must be produced using electricity from a new, non-subsidized wind or solar park. 'New' means that the wind or solar park is no more than 36 months old when the electrolyser starts operating.
For electrolysers connected to the grid and built after 1 January 2028, the additionality requirement applies immediately. Electrolysers that start operating before 1 January 2028 can use a 10-year transition period, during which additionality is not required.
It is also possible to produce hydrogen through electrolysis using a direct line that supplies electricity from a wind or solar park. A system is eligible for a subsidy if the hydrogen production capacity is at least 500 kW. Because the electricity is always produced from renewable sources, the number of full-load hours (5,840) is higher than for systems connected to the grid.
You will receive a subsidy if your installation is operating and, at the same time, enough renewable electricity is being produced and delivered through the direct line. If you want to produce hydrogen all year round, the wind or solar park must have enough extra capacity.
No subsidy for the renewable electricity
If you receive a subsidy for hydrogen from electrolysis, you cannot receive a subsidy for the renewable electricity that you use.
For an electrolyser with a direct connection to a wind and/or solar park, additionality is always required. In this case, 'additionality' means that the hydrogen must be produced using electricity from a new wind or solar park. 'New' means that the wind and/or solar park is no more than 36 months old when the electrolyser starts producing hydrogen.
New in the SDE++ 2025 is the possibility to apply for a subsidy for producing hydrogen by gasifying waste. Your permit must show that you only use waste streams that are approved by the Ministry of Infrastructure and Water Management.
You will only receive a subsidy for the amount of hydrogen actually produced. Keep this in mind if you plan to make and supply syngas without fully converting it into hydrogen.
Carbon Capture and Storage (CCS)
CCS is a temporary solution to reduce CO₂ emissions for companies that cannot make their processes CO₂-neutral in the short term. This can be for technical or financial reasons. The captured CO₂ is stored in empty gas fields under the sea.
Do you want support from the SDE++? Then you, as the producer, must take care of the capture and purification of the CO₂ yourself. You can now also apply for SDE++ if the CO₂ is stored outside the Netherlands, in another EU member state that is part of the EU Emissions Trading System (EU ETS).
The CCS categories are further divided, so that the correction amount (used to calculate the subsidy) better matches your situation after the system starts operating. This correction amount compensates for the market value of the captured CO₂.
Emissions from biomass and waste
If CO₂ is stored that comes from burning, digesting, or gasifying biomass, it creates negative emissions. These are important in the future to offset remaining emissions that are hard to avoid.
To make negative emissions possible, the biomass used in BECCS (Bio-Energy with Carbon Capture and Storage) must be proven to be sustainable. It must meet the European RED sustainability requirements.
The correction amounts for these categories are still set to 0. But since we expect different values in the future, there are separate categories for:
- Waste incineration plants
- Biomass combustion or capture from ambient air
- Biogenic process emissions, such as capturing CO₂ from a biogas upgrading plant
Emissions from fossil fuels or raw materials
If the emissions come from fossil fuels, you can apply in the following categories:
- Installations at companies under the ETS
- Installations at companies not under the ETS
Combination with CCU
Do you have one capture installation used for both CCS and CCU? Then you can apply for subsidy for combinations of CCS and CCU. However, because of the way the PBL calculates the base amount, not all combinations are allowed – otherwise, you might receive too much subsidy.
You can combine CCS and CCU if you apply for both in the same application round, or if you already have a CCU subsidy from an earlier round.
Combining CCS grants with one capture installation
You may combine multiple CCS subsidy's from different rounds in one CO₂ capture installation. Because of the way the base amount is calculated, not all combinations are allowed, to prevent receiving too much subsidy.
This is only allowed for CCS categories, and only for a new installation designed for 8,000 full-load hours.
The subsidy payments will be made each year in the order of the subsidy decisions. So if you combine multiple subsidy grants, you will first receive the advance payments for the oldest grant, then for the newer ones.
Carbon Capture and Utilisation in greenhouse horticulture (CCU)
You can also receive a subsidy if the greenhouse horticulture sector in the Netherlands uses your captured CO₂. Because the emission factor is based on avoiding what is called 'summer heating', only the use of CO₂ in greenhouse horticulture qualifies for subsidy.
In your feasibility study, you must explain how you will organise the supply of CO₂ to the greenhouses. The CCU table shows the different situations we recognise.
New in the scheme is that large biomass combustion installations (≥ 50 MW thermal input and ≤ 100 MW electric output) can now also apply for a CCU subsidy.
For biomass combustion installations with a thermal input ≥ 7.5 MW, the biomass used must meet the European RED sustainability criteria.
Combining CCU with CCS
Do you have one CO₂ capture installation for both CCS and CCU? Then you can apply for a combined subsidy for both uses.
However, due to the way PBL calculates the base subsidy amount, not all combinations are allowed. Otherwise you might receive too much subsidy.
Requirements for CCS and CCU
Are you applying for a CCS subsidy, and are parts of your production installation required to be new according to the designation rules, but you do not yet have an environmental permit? Or are you applying for a subsidy of more than € 400 million? Then the following extra conditions apply:
- You must sign an implementation agreement with the Dutch State within 2 weeks after receiving the subsidy decision.
- You must provide a bank guarantee within 4 weeks after the subsidy decision is issued.
Because CCS projects are large, a project commitment period of 3 years and a start-up period of 6 years apply. To monitor progress, you must send us the complete environmental permit within 3 years after the subsidy is granted. This applies to the parts of the installation that must be new according to the rules (such as the capture, purification, and if applicable, liquefaction installations).
If you already have these permits when applying for the subsidy, you should include them with your application.
If you do not meet these milestones, the subsidy may be withdrawn, and the bank guarantee may be collected.
Production measurements must be reported monthly to RVO by certified measurement companies. At the end of each calendar year, you must submit an annual statement to prove that the captured CO₂ has actually been stored.
Advanced renewable fuels
In the Dutch Climate Agreement, agreements were made to encourage the production of advanced renewable transport fuels. For this purpose, a production cap of 10.6 billion kWh has been set.
The correction amount for these categories is based on the average market price of the fuel and the average value of HBE certificates (HBE = Renewable Energy for Transport Certificate). Both values are determined each year by PBL.
You can only receive a subsidy for the fuel if double-counting HBEs have been issued. This proves that the fuel is used in the Netherlands for road transport or inland shipping.
Gaseous biofuels may count double
Gaseous biofuels may be eligible for double counting. This means you receive twice as many HBEs when the fuel is registered. Whether a gaseous biofuel qualifies for double counting, must be shown in a double-counting declaration.
There are 5 categories in the SDE++ scheme:
- bioethanol produced from solid lignocellulosic biomass;
- biomethanol produced from solid lignocellulosic biomass;
- diesel and petrol substitutes produced from solid lignocellulosic biomass;
- bio-LNG produced by manure mono-fermentation;
- bio-LNG produced by all-purpose fermentation.
Allowed biomass
You may only use biomass that meets the requirements of Annex IX, Part A of the Renewable Energy Directive.
For fermentation, the existing definitions and boundaries for co-digestion and mono-manure digestion in the SDE++ remain in effect.
Production reporting
The measured production data must be reported monthly to RVO by certified measurement companies. At the end of each calendar year, you must submit an annual statement to prove that the produced fuel has been released on the Dutch market and is used for road transport or inland shipping. This is verified using information from the Dutch Emissions Authority (NEa) register.
Download a table with tariffs for your installation
Would you like to know the amounts that apply to the category you are interested in? Download the Table of Tariffs for Low-Carbon Production SDE++ 2025.
This download is in Dutch. We wil publish the translated version as soon as it is ready.
Download a table with documents you need
Would you like to know which attachments you need to include with your application? Download the Table Documents to attach to Low-Carbon Production Applications 'Tabel verplichte bijlagen SDE++ 2025', CO2-arme productie).
This download is in Dutch. We wil publish the translated version as soon as it is ready.
- Ministry of Climate Policy and Green Growth
