Netherlands expands SDE++ budget to US$14bn, green hydrogen eligible for the first time

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The Dutch government is targetting a 49% reduction in greenhouse gas emissions compared to 1990 levels by 2030. Image: Alternus Energy.

The Dutch government has made a record €13 billion (US$14.3 billion) available for its 2022 Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++) that is now open to green hydrogen projects linked to a wind or solar farm.

Opening on 28 June, SDE++ is a scheme designed to encourage companies and non-profit institutions to reduce their emissions by providing subsidies for renewable energy or carbon capture and storage (CCS) projects.

In 2020, the government awarded more than €2.1 billion in its first subsidy scheme, SDE+, to PV projects totalling 3,440MW capacity. Last year, it was expanded – becoming SDE++  – to €5 billion.

With the EU’s carbon price expected to rise this year, the Dutch government is anticipating less subsidies needed for previously approved projects, making an extra €2 billion available.  

In addition, the Dutch cabinet decided to release an extra budget. “As a result, the opening budget has been increased once by €6 billion,” said a government statement, bringing the total pot available to €13 billion.

As well as green hydrogen projects being eligible for government subsidy, so too are industrial electrification projects based on hybrid glass furnaces.

Furthermore, the construction timeframe for geothermal energy and CCS projects has been extended to reflect the nature and lead-in times for geothermal projects in the Netherlands.

The Netherlands has been steadily increasing its solar capacity each year, with 3.3GW of solar PV added last year, taking its total deployed capacity to more than 14GW, according to the Dutch Central Agency for Statistics.

The Dutch Cabinet has targeted a 49% reduction in greenhouse gas emissions compared to 1990 levels by 2030, and in correlation to that the Netherlands Environmental Agency expects renewable electricity to grow to 75% of total consumption by 2030.

17 May 2022
With hydrogen now a central part of many nations’ decarbonisation plans there remains an elephant in the room; how do we produce truly clean green hydrogen in the volumes needed to support this burgeoning Hydrogen ecosystem, at comparable prices to grey or blue Hydrogen? Without a route to green hydrogen at scale, efforts to transition to hydrogen will not contribute to the 2050 target of net zero. With this in mind, the third annual Green Hydrogen Summit will examine every aspect of achieving cost- competitive green hydrogen at scale. The Summit will provide a comprehensive view of the entire green hydrogen ecosystem, including the regulations and incentives countries are deploying, the business models to deploy electrolysis projects, the infrastructure upgrades needed to transport and store hydrogen at scale, and the industrial applications for the hydrogen being produced. Now into its third year, and with an audience made up of government officials, energy suppliers, project developers, debt providers and investors, utilities, gas grids and off-takers the summit will bring together delegates with leading experts to share the latest case studies, inspire action, and make the connections to realise the potential of green hydrogen.

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