602MW Electrolysis

Netherlands Unveils Green Hydrogen Auction Winners, Allocating €700M for 602MW Electrolysis Capacity

The Dutch government has announced the results of its much-anticipated national green hydrogen auction, identifying 11 winning projects that will receive substantial subsidies to bridge the cost gap between renewable hydrogen and its fossil-fuel counterparts. While the auction aimed to allocate a budget of nearly a billion euros (€998 million), the government has so far awarded approximately €700 million, supporting a combined 602MW of electrolyser capacity.

The auction had seen considerable interest from the industry, with applications totaling an impressive €3.2 billion. However, the initial allocation falls short of the full budget, indicating a cautious yet significant step towards fostering a domestic green hydrogen economy.

"The average grant amount of the 11 winning projects is €1.78 million per MW of electrolysis capacity. The companies have until mid-2030 to complete their project," stated a government spokesperson.

This timeline provides the awarded projects with a clear deadline to bring their facilities online, contributing to the Netherlands' ambitious climate goals.

The awarded subsidies are crucial for de-risking early-stage green hydrogen projects, which typically face higher capital and operational costs compared to established fossil fuel-based hydrogen production. By covering this "cost gap," the Dutch government aims to accelerate the deployment of electrolysis technology and stimulate the production of hydrogen using renewable electricity.

The 602MW of new electrolyser capacity represents a significant boost to the Netherlands' efforts to scale up green hydrogen production. This renewable hydrogen is expected to play a vital role in decarbonizing hard-to-abate sectors such as heavy industry, transportation, and potentially provide a clean energy storage solution.

While the current allocation utilizes about 70% of the available budget, it remains to be seen if and when the remaining funds will be deployed in future auction rounds or through other support mechanisms. Nevertheless, the announcement of these 11 winners marks a concrete advancement in the Netherlands' strategy to become a frontrunner in the European green hydrogen landscape. The coming years will be critical as these projects move from planning to realization, paving the way for a more sustainable energy future.

Source: Information for this article is based on reports from:

Please note that the complete list of all 11 winning companies was not fully disclosed in these initial reports, but the overall results and key details were confirmed.

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