The Dutch government will launch a €250m ($263.7m) auction round next month for green hydrogen projects with electrolysers that are smaller than 50MW, it announced on Monday.

The aim is to encourage innovation in green hydrogen among smaller energy users, such as industrial offtakers, transport companies or homes.

“With these projects companies can also help prevent grid congestion and use the hydrogen to store surplus renewable energy locally,” the government said.

The tender will be open between 30 November and 14 December, with subsidy winners expected to be announced in early 2024. The auction will invite bids from electrolyser projects with a minimum capacity of 0.5MW that draw electricity from wind or solar installations. If the installation starts producing green hydrogen after 2028, the green electricity part of the project must be financed without subsidies, the government said.

50MW – Capacity threshold for projects

Projects will be able to receive subsidies for up to 15 years of their operational lifetime and covering up to 60% of their costs above market prices.

“I am very happy that we can now also support smaller hydrogen projects. This should give a significant boost to the knowledge and experience with hydrogen production in the Netherlands,” said acting Dutch Energy Minister Rob Jetten.

The northwest European country aims to have at least 4GW of installed electrolysis capacity by 2030 and wants to double it to 8GW just two years later.

In the coming months, the government will also distribute further information about the bumper €1b tender for large-scale green hydrogen projects that will take place next year, it said.

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Author: Karolin Schaps