Dutch start-up bags €40m of EU funds to bring hybrid hydrogen electrolyser-battery to market
Industry newsBattolyser Systems has developed a cutting-edge technology that draws inspiration from nickel-iron battery design. What sets this technology apart is its ability to automatically split water into hydrogen and oxygen when it's fully charged, while still being capable of storing electricity. This dual functionality is particularly valuable in the realm of renewable energy.
The hydrogen generated by this system can be directly supplied to customers or stored for later use, offering a flexible and sustainable energy solution. It can act as backup power to stabilize the seasonal fluctuations in renewable power generation, ensuring a reliable and consistent energy supply.
Despite the promising potential of this hybrid electrolyser-battery system, it is important to note that it has not yet entered commercial production. However, Battolyser Systems has already started taking orders for 250 units of its 1MW Battolyser, with deliveries slated for 2024. The company's ability to fulfill these orders hinges on the commencement of its first production lines, which are set to operate within a 7,000-square-meter facility located in Schiedam, a suburb of Rotterdam. These production lines are scheduled to begin commissioning by the end of the year and are expected to reach a manufacturing capacity of 50MW in the following year.
Mattijs Slee, the CEO of Battolyser, confirmed that the initial €7.5 million from the EIB investment would be allocated to completing the Schiedam manufacturing facility. He expressed optimism that the company could scale its production capacity to 200MW if the demand necessitates the establishment of further production lines.
Looking ahead, Battolyser Systems has plans for a substantial 1GW plant at the Port of Rotterdam, which is projected to initiate operations in 2025. However, the plant is not expected to achieve its full manufacturing capacity until 2026. Slee hinted at the possibility of expanding manufacturing operations beyond the Netherlands, potentially including the United States, depending on demand.
While the specific cost of the 1MW Battolyser system was not disclosed, Slee indicated that the 2-5MW series, set to become available for purchase in 2025, will be competitively priced, similar to alkaline systems.
The €40 million investment in Battolyser Systems comes in the form of "venture debt" through the InvestEU program, which is underpinned by a substantial EU budget guarantee of €26.2 billion. EIB Vice-President Kris Peeters emphasized the significance of this investment in supporting innovation that aligns with climate goals and strengthens European supply chains. Notably, all materials used in the production of Battolyser Systems' products are sourced from within Europe.
The venture debt financing agreement is described as "quasi-equity," meaning that repayments will be contingent on the company's performance rather than a fixed interest rate over the loan's term. Notably, the EIB has not taken an ownership stake in Battolyser Systems. This innovative financing approach carries a higher level of risk but is made possible through the support and guarantees provided by the European Commission. The Just Transition Fund, initiated in 2021 to bolster green projects and aid regions affected by the transition away from fossil fuels, has also provided a €2 million grant to Battolyser Systems, further exemplifying the commitment to sustainable and innovative energy solutions.