The Dutch government has introduced a €148 million fund to stimulate the production of high-quality green technology. The Investment Subsidy Manufacturing Industry Climate Neutral Economy (IMKE) supports establishing production lines for electrolysis installations, innovative solar panels, and batteries. The fund, part of the National Growth Fund Project GroenvermogenNL, marks the government’s first major support for large-scale production in the high-tech manufacturing sector. Applications open from 1 October 2024 to 31 January 2025, with the goal of fostering a climate-neutral economy and reducing dependence on fossil fuels and foreign energy sources.
Minister Sophie Hermans of Climate and Green Growth emphasized the importance of this initiative, stating, “Building and further developing new and green industries is essential for the Netherlands. Not only for our economy but also to achieve the climate goals we have agreed upon.” The IMKE fund is designed to bridge the gap between innovative ideas and large-scale production, which is often a challenging step for entrepreneurs.
Structure and budget
One of the aspects of the IMKE fund is that it does not require companies to demonstrate direct CO2 reduction to qualify for subsidies. This change addresses a significant hurdle that previously made it difficult for companies to secure funding for technologies that reduce emissions indirectly. The CO2 reduction occurs at the customer’s end, such as in the chemical or construction industries, rather than at the point of production.
The fund’s total budget of €148 million is allocated as follows: €100 million for electrolysis installations, €28 million for solar panels, and €20 million for batteries. The maximum subsidy amounts are €50 million for electrolysis installations, €25 million for solar panels, and €20 million for batteries. The minimum subsidy rate is 15% of total costs, increasing for projects in designated support areas or for small and medium-sized enterprises (SMEs). Small companies can receive up to 35% (or 40% in support areas), while medium-sized companies can receive up to 25% (or 30% in support areas).
Supporting a green economy
To help potential applicants, an online information session is scheduled for 13 August 2024. This session will provide guidance on preparing subsidy applications and understanding the requirements. Eligible projects must begin within six months of the subsidy decision, be completed within five years, and maintain the production line in the area for a minimum of three to five years, depending on company size. As the application period approaches, businesses across the Netherlands are gearing up to contribute to this transformative initiative.
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