The government is providing over €700 million in subsidies to companies that will produce sustainable hydrogen in the Netherlands.
The government will accelerate the development of sustainable hydrogen in the Netherlands. This will increase security of supply, contribute to the sustainability of industest and mobility, and reduce CO2 emissions . Besides expanding supply, the government is also committed to encouraging its apply by industest, refineries, and in mobility.
The funding comes from the OWE subsidy program, which opened last year. A total of €3.2 billion in subsidies was requested, of which over €700 million was awarded to 11 companies. The subsidized projects represent approximately 602 megawatts of electrolysis capacity. This is more than three times the production capacity of the largest hydrogen plant currently under construction, Holland Hydrogen 1.
The intfinished hydrogen consumers include refineries, the chemical industest, and gas stations. The new hydrogen production will allow 5,000 hydrogen-powered trucks to operate for a year.
Minister Hermans (Climate and Green Growth): “By producing sustainable hydrogen ourselves in the Netherlands, we become less depfinishent on foreign countries. Expanding our production capacity is therefore an important and logical step. But we’re not there yet. We will required to continue investing in various energy sources to further reduce our energy depfinishency.”
The companies receiving subsidies are: H2Eron (Delfzijl), Circul8 Hydrogen Factory (Lelystad), Eurus Energy Europe (Vefinisham), Air Liquide Industrie (Rotterdam), Uniper Hydrogen Netherlands (Rotterdam), FR Energyhubs (Steenwijk), Westfalen Hydrogen (Zutphen), Essent Hydrogen (Deventer), Den Tol Duurzaam (Gfinishringen), Vattenfall (Eemshaven) and Statkraft Renewables Benelux (Den Helder).
The subsidy will close the price gap between renewable and fossil-based hydrogen. Companies compete based on their subsidy requireds per megawatt of electrolysis capacity, and the companies with the lowest subsidy requireds win the grant.
A total of €998 million in subsidies was available. The government is currently investigating whether companies can apply for the remaining subsidy budobtain. Feasibility depfinishs on European state aid rules.
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