"Hydrogen Energy Project Funding: The Dutch government invested 700 million euros to support 11 projects, each with a capacity of 602 MW in hydrogen energy production"
Dutch Government Boosts Green Hydrogen Production with €700 Million Subsidy
The Netherlands is taking a significant step towards its goal of expanding renewable hydrogen production for industry and transportation, with the awarding of over €700 million in subsidies under the Large-Scale Renewable Hydrogen Electrolysis Production Subsidy Scheme (OWE) [1][2][3]. The subsidies will fund 11 green hydrogen projects, with a combined electrolyser capacity of approximately 602 megawatts (MW).
The OWE program, which has a total budget of nearly €1 billion, aims to reduce carbon emissions by supporting large-scale green hydrogen production using renewable electricity [1]. The subsidies cover up to 80% of project capital costs and include an operating subsidy per kilogram of hydrogen produced.
One of the projects receiving subsidies is the Ely Gator Project by Air Liquide Industry in Rotterdam. This project will feature a 200 MW electrolyzer capacity for renewable hydrogen production, and the company aims to reduce carbon dioxide emissions by up to 500,000 tons per year through its European low-carbon hydrogen business portfolio expansion [1][2]. Total Energy's industrial platform will also receive renewable hydrogen from the Ely Gator Project.
The 11 subsidized projects and their associated companies are: Air Liquide Industrie, Circul8 Hydrogen Factory, Den Tol Duurzaam, Essent Hydrogen, Eurus Energy Europe, FR Energyhubs, H2Eron, Statkraft Renewables Benelux, Uniper Hydrogen Netherlands, Vattenfall, and Westfalen Hydrogen [1][2][3].
The projects, which must be completed by mid-2030, have a combined production capacity that is approximately three times larger than the country's currently under construction 200 MW Holland Hydrogen 1 project [1]. The scheme granted subsidies mostly to projects with the lowest subsidy needs per MW, with some projects being rejected due to financial unfeasibility or unclear hydrogen usage plans [2][3]. The average subsidy amount is about €1.78 million per MW of electrolyser capacity [2][3].
An example of a specific project is the Den Tol Duurzaam initiative, which will receive approximately €10 million from OWE to convert wind and solar power into green hydrogen by 2027, producing about 500,000 kg of hydrogen annually for transportation and regional infrastructure use [4].
The subsidies are intended to reduce the cost gap between producing sustainable and fossil-based hydrogen energy, and the projects are likely to use electrolytic hydrogen production technology in line with the country's goal of reducing dependence on fossil fuels.
Air Liquide Industry is a subsidiary of the French industrial gas giant, Air Liquide Group. The company is also cooperating with Vattenfall on the "CurtHyl Project" to use wind power from the Slavtedam Wind Farm for hydrogen production.
While the subsidy funds have not yet been fully disbursed, the 11 new projects involving large-scale electrolyzers with a capacity of about 602 MW of subsidized electrolyzers are expected to meet the hydrogen demand of 5000 hydrogen trucks for one year. Projects that were not subsidized by the Netherlands Enterprise Office (RVO) mainly had issues with the actual use of hydrogen energy produced, economic feasibility, or timely completion.
Sources: [1] RVO (Netherlands Enterprise Agency) [2] Energy-Transition.nl [3] H2 Bulletin [4] Den Tol Duurzaam
- The Dutch government's €700 million subsidy for green hydrogen production aligns with their goal of promoting sustainability in the realm of environmental science.
- The Ely Gator Project, a green hydrogen initiative by Air Liquide Industry, aims to exploit science and technology to reduce carbon emissions and support the health-and-wellness aspect of a sustainable environment by producing renewable hydrogen.
- The infusion of finance into the green hydrogen sector by the Netherlands is not only a significant boost for business and technology but also a strategic move towards reducing reliance on fossil fuels and fostering a fitness-and-exercise lifestyle that prioritizes eco-friendly practices.
- Companies like Air Liquide Industrie, Circul8 Hydrogen Factory, Den Tol Duurzaam, and others receiving subsidies under the Large-Scale Renewable Hydrogen Electrolysis Production Subsidy Scheme are expected to leverage green hydrogen to establish a more sustainable economy, thereby impacting various industries, including health-and-wellness, fitness-and-exercise, and finance.
