700 million euros subsidy for sustainable hydrogen production in the Netherlands!
602 megawatts of electrolysis capacity
The investment is part of the PRA subsidy scheme opened last year. A total of 3.2 billion euros in subsidies was applied for. In the end, eleven projects received an award, together accounting for 602 megawatts of electrolysis capacity. By comparison, that is more than three times the capacity of the Netherlands’ largest hydrogen plant under construction, Holland Hydrogen 1.
What is the MRA subsidy scheme?
This subsidy is the successor to the 2023 Subsidy Scheme Scaling Up Fully Renewable Hydrogen Production via Electrolysis (OWE). The government continues to use the term OWE, even though it now refers to “Subsidy Scheme for Large-scale Fully Renewable Hydrogen Production via Electrolysis. Nice and short and clear all around, but good.
5,000 trucks
The subsidized initiatives target a variety of hydrogen applications, including in refineries, the chemical and transportation sectors. It is estimated that the amount of hydrogen produced could power about 5,000 trucks annually.
Minister Rob Jetten (Climate and Green Growth) emphasizes the strategic importance: “By producing sustainable hydrogen ourselves in the Netherlands, we become less dependent on foreign countries. Increasing our production capacity is therefore an important and logical step. But we are not there yet. We will have to continue to invest in different energy sources to further reduce our energy dependence.”
Which companies receive grants?
The companies receiving PRA grants are:
- Air Liquide Industrie (Rotterdam)
- Circul8 Hydrogen Factory (Lelystad)
- Den Tol Sustainable (Gendringen)
- Essent Hydrogen (Deventer)
- Eurus Energy Europe (Veendam)
- FR Energyhubs (Steenwijk)
- H2Eron (Delfzijl)
- Statkraft Renewables Benelux (Den Helder)
- Uniper Hydrogen Netherlands (Rotterdam)
- Vattenfall (Eemshaven)
- Westphalia Hydrogen (Zutphen)
Reduce cost differential
A major goal of the subsidy scheme is to reduce the cost differential between renewable and fossil hydrogen. Companies could apply based on their expected subsidy requirement per megawatt of electrolysis capacity. The parties with the most efficient proposals ultimately received the allocated funds.
A total of nearly 1 billion euros was available. The cabinet is currently investigating whether the remaining amount can still be used, subject to approval under European state aid rules.
Large electrolyzers
RVO: “There will be 11 new projects with large electrolyzers from companies in the Netherlands, which will make sustainable hydrogen with the help of MRA subsidy. The electrolysers have a combined capacity of about 602 megawatts (MW). Refineries, the chemical industry or gas stations can use the hydrogen in order to become more sustainable and reduce CO2 emissions.”
This subsidy is for companies that realize and use a hydrogen production plant for the production of renewable hydrogen. Companies use an electrolyser with a capacity of at least 0.5 megawatts.
