EemsGas project receives commitment for €150 million operating subsidy for green gas production

The subsidy gives EemsGas certainty of operating income for the next f15 years. EemsGas is a 50/50 joint venture in which sustainable raw materials producer Perpetual Next and Gasunie have been working together since 2022 to produce large volumes of biomethane from waste wood.

At the end of last year, EemsGas received commitment for a DEI+ investment subsidy of €30 million. This is earmarked for the construction of a green gas plant at the Chemical Park in Delfzijl. The SDE++ subsidy now awarded supports the production phase: it covers a minimum price for biomethane and thereby provides long-term certainty on operating income.

For the development of the plant, EemsGas entered into a partnership with TNO, which provides the gasification technology. The plant will deliver 18 million m³/yr of green gas, many times the production volumes of conventional green gas production facilities.

Rene Buwalda, CEO of Perpetual Next, said: “Both subsidies not only demonstrate a substantial financial commitment by the Dutch government, but also underline the importance of this development for the energy transition and the competitive position of the Netherlands. The plant will make a strong contribution to our country’s energy independence and, moreover, will help meet the globally growing demand for biomethane.”

Hans Coenen, COO of Gasunie, added: “This commitment provides additional support to make the deployment of gasification technology for the production of renewable fuels such as green gas a success. Sustainable molecules have an important role to play in ensuring our security of supply.”

The maximum subsidy amount of €149.8 million applies over a production period of 15 years, from 1 July 2029 to 30 June 2044. The actual annual payment varies with the market price for gas and acts as a price safety net, guaranteeing a minimum level of income over the full term.

The plans will be finalised in the coming period, so that construction of EemsGas can commence in 2027. It should be operational in 2029.

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/01062026/eemsgas-project-receives-commitment-for-150-million-operating-subsidy-for-green-gas-production/