Breakthrough in green hydrogen: H2 Hollandia reaches financial close
The green hydrogen project H2 Hollandia, a collaboration between Novar and Avitec, has reached financial close. This means that all contracts have been signed and all financing agreements have been finalized. From the customer and installer to the construction party and banks: the construction of the hydrogen installation is now set to begin. H2 Hollandia connects the large-scale Vloeivelden Hollandia solar park directly to an electrolyzer. The electrolyzer produces green hydrogen without placing any additional strain on the electricity grid. Upon completion of the system in 2026, it will be the largest operational electrolyzer in the Netherlands producing entirely green hydrogen.
This project is a game changer for sustainable energy in the Netherlands. By converting solar energy directly into hydrogen, we are killing two birds with one stone: we are reducing grid congestion and enabling sustainable mobility." - Jelmer Pijlman, co-founder of Novar.
Sustainable mobility and industry benefit
The green hydrogen is purchased by an industrial gas distributor and used for sustainable mobility and industry in the region. The hydrogen is pressurized by the system and collected by the distributor using cylinder trailers. This is how the hydrogen is transported to the end users. Novar and Avitec's ambition is to break the deadlock between hydrogen supply and demand by making hydrogen available regionally, thereby accelerating the further development of a decentralized hydrogen economy.
“This project is a blueprint for how we can deal with local sustainable energy production in the Netherlands. By making hydrogen available regionally, we can also make heavy transport more sustainable, for example.” - Ben Timmermans, Avitec.
Smart energy solution against grid congestion
At the heart of H2 Hollandia is the 5 MW electrolyzer that will be connected to the 115 MWp Vloeivelden Hollandia solar park. The system will produce approximately 300,000 kg of green hydrogen from solar power annually. Because the electrolyzer will be connected to the same grid connection as the solar park, we can prevent further overloading of the power grid. It is a creative solution to increasing grid congestion, a problem we are increasingly encountering in the Netherlands.
Due to this same limited local grid capacity, the existing solar park is currently unable to feed all of its electricity into the grid during very sunny periods (curtailment). Thanks to H2 Hollandia, this surplus electricity will soon be able to be used to produce green hydrogen. This will make the energy from the solar park much more efficient, ultimately contributing to a more stable and sustainable energy supply.
Strong partners and regional cooperation make H2 Hollandia possible
Strong cooperation with local authorities and businesses is important for the success of H2 Hollandia. The Municipality of Borger-Odoorn, the Province of Drenthe, and the Groningen Environmental Service have contributed to a smooth licensing procedure. Royal Avebe, the largest employer in the region, also plays a crucial role as the owner of the private electricity grid to which the solar park and the electrolyzer will be connected.
The H2 Hollandia hydrogen installation is being built by project partners Plug Power, Resato & Van Halteren Technologies, and Summit Engineering. Avitec is responsible for all civil engineering work. Repowered is responsible for controlling and optimizing the system. Repowered also acted as an advisor in the realization of this project. Klaer will be responsible for the operation and maintenance (O&M) of the system. Together with developer Novar, these parties are making it possible to build the system and maintain it in the future.
Pioneering financing and public support
Innovative projects such as H2 Hollandia require pioneering work not only in technology, but also in the financing structure. There are no comparable commercial projects and the technology still has a limited track record. This calls for a progressive financing approach. Together with Rabobank, we have succeeded in financing the project. A customized approach and a clear long-term vision have been essential in finalizing the business case.
Subsidies from GroenvermogenNL through the Demonstration Energy and Climate Innovation (DEI+) scheme, from the Netherlands Enterprise Agency (RVO) through the Scaling Up Fully Renewable Hydrogen Production through Electrolysis (OWE) scheme, and the development subsidy from the Province of Drenthe also play an important role. Such public investments are currently indispensable for getting innovative hydrogen projects off the ground and increasing the availability of green hydrogen in the Netherlands.
“This project shows how smart investments in sustainable energy not only contribute to a better environment, but also to economic growth and innovation.” - Ronald Linthorst, Energy Transition Banker at Rabobank.
The future of green hydrogen
H2 Hollandia will be operational in 2026. The project not only contributes to making the Dutch energy supply more sustainable, it also serves as a blueprint and example for future hydrogen projects at home and abroad.
“The final investment decision for H2 Hollandia was made recently. Now we are another concrete step further: the hydrogen projects that reach financial close in the Netherlands can be counted on one hand. Despite the many challenges in the market, H2 Hollandia has now also succeeded. This project is going to happen.” – Ruben Burggraaf, Project Director H2 Hollandia, Novar.
With H2 Hollandia, Drenthe is becoming a pioneer in the hydrogen economy and the Netherlands is taking an important step towards a more sustainable future.