VoltH2 receives operating subsidy SDE++ for green hydrogen plants in Zeeland
Bergen op Zoom, March 6, 2023 -- VoltH2 will receive a substantial operating subsidy for the production of green hydrogen from the Rijksdienst voor Ondernemend Nederland (RVO) and the Ministry of Economic Affairs and Climate (EZK).
VoltH2 will receive this grant for its projects in Vlissingen and Terneuzen, respectively. These green hydrogen plants have had an environmental permit since Q2 2022 and, with the award of the SDE++ support, the projects are now another step closer to realization. Following the final investment decision, construction of the plants is expected to start no later than early 2024.
Capacity and emission reduction
Both projects are almost identical and involve a green hydrogen plant with a capacity of about 25 MW, which will produce 2,000 tons of green hydrogen annually through electrolysis. In a second phase, the capacity of both plants could be expanded to 100 MW, which would produce 8,500 tons of green hydrogen annually. It is estimated that green hydrogen can achieve an emission reduction of 9 kg of CO2 per kg of hydrogen as early as 2025, compared to the usual production process for hydrogen of fossil origin (gray hydrogen).
Substantial operating subsidy
SDE++ is the primary subsidy instrument through which the Dutch government aims to stimulate renewable energy production and CO2 reduction. The production of green hydrogen was included in the SDE++ in 2020. The subsidy is now being awarded to VoltH2 for the first time for plants with industrial-scale production.
The amount of the grant awarded depends on the amount of green hydrogen produced and the associated reduced CO2 emissions. The subsidy is paid over the first 15 years of operation of the green hydrogen plant and is an important revenue support.
Step closer to realization of green hydrogen plants
André Jurres, Managing Director of VoltH2, on the SDE++ allocation: "VoltH2 is building a chain of green hydrogen plants: we are currently developing three production sites in the Netherlands and have also recently started in Wilhelmshaven (Germany). The development of the current portfolio, with a combined potential of 500 MW, obviously involves substantial investments. We are very pleased with this substantial subsidy from the RFO. The grant embodies the government's vision of the energy transition and the role it sees in it for hydrogen and VoltH2's projects. The grant brings us another step closer to realizing our plans in Vlissingen and Terneuzen."
Gijs Voskuyl, Partner and Head of Infrastructure at shareholder DIF Capital Partners says: "We consider the award of the first SDE++ for green hydrogen to VoltH2's projects as a confirmation of the pioneering role VoltH2 is playing in the development of green hydrogen production capacity in the Netherlands. In addition, the grant decision demonstrates the government's confidence in both projects and provides an important and solid basis for the further development of these plants."
Paul Tummers, CEO of shareholder Virya Energy said, "With VoltH2 we are delighted to contribute to the development of sustainable hydrogen in the Netherlands. The allocation of the SDE++ grant by the government is an important step to achieve our ambitions in the sector and a sign of the government's will to support sustainable hydrogen as a concrete alternative to fossil fuels."
Market forces
VoltH2 was the first to receive the necessary permits in 2021. For the SDE++, the company was again selected first. André Jurres: "I think these achievements show that VoltH2 is a frontrunner. Our team is already fully engaged in the next phase, but at the same time we want to create a functioning market for green hydrogen as soon as possible. By supporting individual projects such as those in Vlissingen and Terneuzen, this subsidy will stimulate market forces, which is much needed to meet the climate goals. VoltH2 is happy to play an important role in this."
