The European Fee has authorized, below EU state support guidelines, a Dutch measure of €80 million to assist Djewels BV, a subsidiary of hydrogen firm HyCC BV, in demonstrating an progressive know-how to provide hydrogen from renewable sources . The measure will contribute to the event of hydrogen manufacturing from renewable sources, consistent with the goals of the EU Hydrogen Technique and the European Inexperienced Deal.
Dutch measure
The Netherlands has notified the Fee of its plans to assist the development and operation for 3 years of an illustration mission for the manufacturing of hydrogen from renewable sources.
The mission supported by the measure is a primary of its variety within the EU and represents a big innovation that goes far past the cutting-edge. Specifically, the mission goals to reveal the feasibility of renewable hydrogen manufacturing with an alkaline electrolyzer with excessive present density electrodes, excessive strain hydrogen manufacturing and a small spatial footprint. The progressive electrolyzer can have a capability of 20 MW.
The beneficiary of the measure, Djewels, will personal and function the hydrogen manufacturing facility. The help will take the type of a direct grant of EUR 80 million, protecting the mission's anticipated funding hole. Because the precise funding shortfall of the mission will rely upon market developments, the measure gives that, if the mission proves to be very profitable, producing extra internet revenue, the beneficiary will return to the Netherlands part of this extra revenue (“the restoration''). Furthermore, the beneficiary will disseminate the technical know-how acquired because of the mission.
Building of the electrolyser is anticipated to start in 2024, with the mission anticipated to be operational from 2027.
Analysis of the Fee
The Fee assessed the measure consistent with EU State support guidelines, specifically Article 107(three)(c) of the Treaty on the Functioning of the EU, which permits Member States to assist the event of sure financial actions below sure circumstances, and the 2022 Pointers on state support for local weather, environmental safety and power (“CEEAG”).
The Fee discovered that:
- The measure facilitates the event of an financial exercise, particularly the demonstration of an progressive renewable hydrogen manufacturing know-how. On the identical time, it helps the goals of key EU coverage initiatives such because the European Inexperienced Deal and the EU Hydrogen Technique.
- The help has an “incentive impact” as a result of the beneficiary wouldn’t perform the mission with out public assist.
- The measure is critical and acceptable to assist the demonstration mission. As well as, the help is proportionate because it doesn’t exceed the anticipated financing hole of the mission. As well as, a clawback mechanism gives ensures towards overcompensation.
- The measure has a restricted impression on competitors and commerce. Specifically, the beneficiary will likely be required to disseminate the learnings from the mission.
On this foundation, the Fee authorized the Dutch measure in accordance with EU state support guidelines.
background
The 2022 CEEAG gives steerage on how the Fee will assess the compatibility of environmental safety measures, together with local weather safety, and power support measures topic to the notification requirement below Article 107(three)(c) TFEU. The Pointers create a versatile, fit-for-purpose framework to assist Member States present the assist wanted to attain the Inexperienced Deal goals in a focused and cost-effective method.
In July 2020, the Fee revealed the EU Hydrogen Technique, setting bold targets for the manufacturing and use of fresh hydrogen and launching European Clear Hydrogen Alliance, which brings collectively the European hydrogen neighborhood (business, civil society, public authorities).
By speaking the European Inexperienced Deal in 2019, the Fee set a goal of internet zero greenhouse fuel emissions in 2050, which is enshrined within the European Local weather Legislation. Efficient from July 2021, the regulation additionally launched the intermediate goal of decreasing internet greenhouse fuel emissions by at the least 55% by 2030. By adopting the “Match for 55” legislative proposals, the EU set binding targets from a local weather viewpoint protecting all key sectors of the financial system. Particularly, following the reform of the fuel market, the EU now has a framework for the event of a hydrogen market.
The non-confidential model of the choice will likely be made obtainable below the case quantity SA.103720 within the state support register on the Fee's Competitors web site, after resolving any confidentiality points. New publications of state support choices on the Web and within the Official Journal are listed within the Competitors Weekly e-Information.
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