Subsidies for green hydrogen production start - GREENGAS programme accepts applications until the end of June

The subsidy call, launched by the State Environmental Fund just before the end of last year, focuses exclusively on the production of green hydrogen from renewable sources and is primarily intended to support economically weaker regions such as the Karlovy Vary, Ústí nad Labem and Moravian-Silesian regions. GREENGAS will preferentially allocate one billion of the three billion euros to them.

How much is the support per project?‍

The maximum amount of support per project is 65 % of eligible expenditure. One applicant may receive a maximum of EUR 30 million. There is a time limit of 5 years from the written award decision for the implementation of the entire project.

What costs are covered by GREENGAS?

The programme focuses on technical equipment that enables the production of green hydrogen from renewable energy sources. In contrast, the second part of the so-called hydrogen economy, i.e. the reverse generation of electricity and heat from hydrogen using a fuel cell, is not covered by GREENGAS. The costs of the electrolyzers and their accessories (water treatment, control electronics) and the costs of the green hydrogen storage will be eligible.

When is it worth considering green hydrogen production?

The basic prerequisite is an available renewable energy source (photovoltaic or wind power), ideally not older than 36 months. In some cases, this condition can be addressed by a PPA contract (a long-term contract for the supply of renewable energy at a fixed price). Hydrogen is the ideal medium for long-term storage of surpluses from these sources. In order to make the project make economic sense, we always recommend that the consumption of hydrogen, i.e. its conversion back into electricity or heat, is also addressed. Hydrogen as an element has one of the highest energy densities. If we produce electricity and heat from it using a fuel cell, this energy is completely emission-free. The other option is to blend hydrogen into natural gas. In most cases, this is technically possible up to a volume of 20%. Also, burning hydrogen has significantly lower CO2 emissions than burning natural gas.

To qualify for support, it is important that the electrolyser produces as much hydrogen as possible from renewable energy. It will not yet be possible to obtain support for an electrolyser that is used only as a 'load' for balancing the grid (SVR services) and is therefore only connected to the distribution grid. Applicants can expect a reduction of the support for the combined connection of the electrolyser partly to the renewable source and partly to the grid.

How to choose the power of the electrolyzer and how much hydrogen it will produce?

Unfortunately, there is no universal rule. Therefore, we start every implementation with a study that will serve as a basis for your application for support. The study includes an energy balance, an economic balance sheet and a CO2 savings calculation for use in ESG reporting. In general, an electrolyser requires approximately 55 kWh of electricity to produce 1 kg of hydrogen .