VoltH2 receives €20 million to build infrastructure for green hydrogen plants
Just Transition Fund supports energy transition in Zeeland (Netherlands)
Vlissingen (NL), January 29, 2024 - VoltH2 receives a substantial Just Transition Fund (JTF) grant for two of its green hydrogen plants. The plants will be built in Zeeuws-Vlaanderen/Vlissingen-Oost, one of the regions in the Netherlands receiving European support to deal with the consequences of the transition from fossil to green energy. The region will receive a total of 58.5 million euros from the Just Transition Fund (JTF) launched in early 2023. Today, Jo-Annes de Bat, deputy at the Province of Zeeland, presented VoltH2 with two checks for 10 million euros.
With an annual production and consumption of nearly 600 ktonnes of hydrogen, the Zeeland industry, in the South of the Netherlands, is the leader in the Benelux. Since the bulk of this hydrogen is still produced using natural gas, a lot of CO₂ is released in the process. With the Green Deal, the European Commission aims for a climate-neutral Europe in 2050. Within this energy transition, green hydrogen will play a crucial role in drastically reducing CO₂ emissions from industry and heavy transport.
Less CO₂, less grid congestion
More than a third of the available JTF grant amount for the Zeeland area will go to VoltH2. The hydrogen producer will receive €20 million for the necessary 150 KV connections for two green hydrogen plants, one in Terneuzen and one in Vlissingen. André Jurres, CEO of VoltH2, explains, "A first condition of this grant is that we help reduce CO₂ emissions. Each of our two plants will produce around 2,000 tons of green hydrogen annually from 2026 onwards, avoiding around 17 kton CO₂ emissions. This will make VoltH2 the first company in the region to contribute to the emission reduction targets of Smart Delta Resources, the partnership of industry in the South-West Netherlands within the Hydrogen Delta program. In a second phase, starting in 2028, we will expand from 25 MW to 125 MW, good for 10,000 tons of green hydrogen annually as well as savings of approximately 85 kton CO₂."
But the green hydrogen plants are also important in preventing grid congestion and balancing the congested Dutch electricity grid. Because the factories run on green power from windmills or solar farms, they consume power only when it is sustainably generated. The hydrogen plants thus level the production peaks that are already appearing on the power grid now, and which will become much larger in the future due to more renewable generation.
Electricity for multiple companies
A necessary prerequisite for the production of green hydrogen is an electricity connection with sufficient capacity. The Just Transition Fund is now providing the necessary support for the realization of two 150 kV connections with substations. In Vlissingen the costs are high due to the long route to the high-voltage substation and the drilling required to cross dikes, roads, railroads and other cables and pipelines. In Terneuzen, the hydrogen plant and the existing high-voltage station are even on different sides of the canal, where the connection must cross the Ghent-Terneuzen canal. An additional plus is that some smaller companies near VoltH2 will also be able to get a connection to this cable relatively easily.
The basic design of the 150 kV fields, the concept design of the cable connections and the 150 and 30 kV substations are already in preparation. André Jurres: "The licensing authorities, with whom we are working very closely, have already done an excellent job to be able to lay the high-voltage cables under the right conditions. North Sea Port, where we are building these two green hydrogen plants, is also doing everything possible to have the appropriate infrastructure ready in time. This JTF grant is another support for our plans, for the port and the region. The next step now is to procure the components. We will start the work at the end of this year and by the end of 2025 we want to complete everything. The connections will be available in early 2026, both for the operation of our hydrogen plants and for connecting third parties."
(End of press release)
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About the Just Transition Fund
The Just Transition Fund (JTF) contributes to the transition to a Climate Neutral Europe. The main objective of the JTF is to enable regions that depend heavily on income and employment from fossil fuels to enter into an energy transition in a just and equal way. A transition that takes into account social, economic and environmental impacts. The total JTF budget for the Netherlands is approximately €630 million. The program runs until 2027.
The transition fund supports areas most affected by the transition to climate neutrality and prevents regional disparities within the European Union from widening. To make Europe completely climate neutral by 2050, transition of emission-intensive industries isnecessary, which is accompanied by major socio-economic challenges. The transition fund provides vulnerable areas with financial support for this purpose.
The JTF is committed to three tracks:
- Innovation: Innovation track funds go to projects that lead to economic diversification, modernization and conversion.
- Investment in technology, systems and infrastructure: Funds earmarked for this track go to projects that develop the "hardware" needed for the transition.
- Labor market: Half of the available funds are reserved for labor market-related projects. These include the creation of new jobs, further training and retraining of employees and job seekers, job search assistance for job seekers and active integration of job seekers. There is an additional focus here on young people.
In the Southern Netherlands, North Brabant, Limburg and Zeeuws-Vlaanderen/Vlissingen-East have been designated as JTF areas. These areas each receive approximately €58.5 million in JTF funds. In this video, (in Dutch) the Southern Netherlands areas explain why the JTF is so important to their region.
JTF in Zeeland Flanders and Vlissingen-East
The energy and resource transition affects the entire economy, but affects the energy-intensive sectors (fossil energy, agri-food industry, chemical industry, and process industry) in particular. Especially in peripheral and sparsely populated Zeeuws-Vlaanderen and Vlissingen-East, there is a risk that job loss will lead to a negative spiral of residents and businesses moving away. To absorb the loss of jobs, the region is putting fully committed to diversifying and making the economy more sustainable in order to create future-proof jobs. This commitment focuses on building a hydrogen economy, capture, storage, reuse of CO2 as a revenue model, renewable electricity for electrification and heat exchange. To create new jobs, and to fill them, investments in technology, systems and infrastructure, in new knowledge and innovation and retraining, job coaching, and social inclusion are necessary. This is not only necessary from an economic perspective, but also affects the quality of life in Zeeuws-Vlaanderen and Vlissingen. After all, jobs and incomes are necessary to maintain facilities.
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André Jurres
Sybil Van Torre