Press Release 30/04/2024

H2Hollandia hydrogen project another step closer to realization

Novar and Avitec are pleased to announce that H2 Hollandia is one of seven projects that has received MRA funding. This brings green hydrogen in Drenthe another big step closer. Earlier, H2 Hollandia received a DEI+ grant from GroenVermogenNL due to the innovative nature of the project. H2 Hollandia is expected to start producing green hydrogen in 2025. 

Read below the news release as posted by the central government on April 29, 2024

7 projects receive grant to produce fully renewable hydrogen

To ensure that more and more renewable hydrogen is produced in the Netherlands and more and more parties gain experience with it, the government opened a subsidy scheme last fall. This scheme, the Subsidy Scheme Scaling Up Fully Renewable Hydrogen Production via Electrolysis (OWE), has now been finalized. The total available amount of nearly €250 million has been awarded and divided among 7 projects. The projects together provide 101 megawatts of electrolysis capacity.

The goal of 100 megawatts has thus been achieved. The subsidy is for companies that build and use an electrolysis installation (production of hydrogen with electricity) of 0.5 to a maximum of 50 megawatts to produce fully renewable hydrogen. The government is happy to support several smaller hydrogen projects, so that lessons with technology and permitting procedures, among other things, accelerate the development of subsequent projects. In total, more than €600 million in funding has been requested.

The 7 projects receiving subsidies are H2 Hollandia (Nieuw-Buinen), Hysolar (Nieuwegein), Groengas asset (Amsterdam), Groengas asset (Groningen), RWE Eemshydrogen (Eemshaven), Van Kessel Olie (Oude Tonge) and VoltH2 (Delfzijl). Of the total 101 megawatts of allocated electrolysis capacity, 91 megawatts are from the projects in the province of Groningen. The hydrogen will be supplied to the chemical industry or gas stations, for example. One project will get the renewable electricity for electrolysis through a direct line to a solar installation. This helps reduce pressure on the power grid.

The scheme will close the cost gap between renewable and fossil hydrogen (the uneconomic top). To award the subsidy, RVO ranked the companies based on subsidy requested per megawatt of electrolysis capacity. As a result, there is competition among the projects and the most cost-effective projects receive subsidies. The average of the 7 winning projects is €2.5 million subsidy per megawatt of electrolysis capacity. The last project that was completely within budget was about €3.2 million subsidy per megawatt. The companies have until 2028 to complete their electrolysis project.

Source :https://www.rijksoverheid.nl/actueel/nieuws/2024/04/29/zeven-projecten-krijgen-subsidie-voor-de-productie-van-volledig-hernieuwbare-waterstof

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