VoltH2 bags ‘substantial’ SDE++ operating subsidy for green hydrogen production

The Netherlands Enterprise Agency (RVO) and the Dutch Ministry of Economic Affairs and Climate Policy (EZK) have awarded VoltH2 a substantial operating subsidy for the Stimulation of Sustainable Energy Production and Climate Transition (SDE++) to support the production of green hydrogen.

Courtesy of VoltH2

SDE++ is the primary subsidy instrument with which the Dutch government wants to stimulate the production of renewable energy and CO2 reduction. The production of green hydrogen was included in the scope of SDE++ in 2020. The subsidy is now being awarded to VoltH2 for the first time for plants providing production on an industrial scale.

As explained, the amount of the subsidy awarded depends on the amount of green hydrogen produced and the associated reduction in CO2 emissions. The subsidy is paid out over the first 15 years in which the green hydrogen plant is operational and represents an important support for the turnover.

VoltH2 said that the subsidy will be used for its projects in Vilssingen and Terneuzen respectively. The two green hydrogen plants have had environmental permits since the second quarter of 2022.

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Now, with the SDE++ support, the projects are a step closer to realisation. After the final investment decision (FID), construction of the plants is expected to start at the latest in early 2024.

According to VoltH2, the two projects are virtually identical and involve a green hydrogen plant with a capacity of approximately 25 MW, which will produce 2,000 tonnes of green hydrogen annually by means of electrolysis. In the second phase, the capacity of both plants can be expanded to 100 MW, which will enable the production of 8,500 tonnes of green hydrogen annually.

It is estimated that an emission reduction of 9 kg CO2 per kg hydrogen can be achieved from 2025, compared to the usual fossil-based production process for hydrogen (grey hydrogen).

André Jurres, Managing Director of VoltH2, commented on the SDE++ award: “VoltH2 is building a chain of green hydrogen plants: we are currently developing three production sites in the Netherlands and have recently also started in Wilhelmshaven (Germany).

“The development of the current portfolio, with a combined potential of 500 MW, naturally involves major investments. We are very pleased with this substantial subsidy from the RVO. The subsidy is an expression of the government’s vision of the energy transition and the role it sees in it for hydrogen and the VoltH2 projects. The subsidy brings us one step closer to realising our plans in Vlissingen and Terneuzen.”

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Gijs Voskuyl, partner and Head of Infrastructure of shareholder DIF Capital Partners, said: “We consider the awarding of the first SDE++ subsidy for green hydrogen to VoltH2 projects as confirmation of the pioneering role that VoltH2 is playing in the development of green hydrogen production capacity in the Netherlands. In addition, the subsidy decision shows the government’s confidence in both projects and forms an important and solid basis for the further development of these plants.”