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November 28, 2024Reading time
5 minutesGreen hydrogen plays an essential role in the transition to a sustainable energy supply. However, the hydrogen market in the Netherlands remains a challenge. Mattijs Slee (CEO of Battolyser Systems) and Reda Atibi (investment manager at Invest-NL) discuss accelerating the energy transition through technology that connects variable renewable energy to the energy demand in our society.
The Dutch Battolyser Systems, a spin-off from Delft University of Technology, makes the production of one hundred percent green hydrogen feasible at low costs. The company holds a unique position worldwide: it develops the first fully alkaline electrolyser with integrated battery functionality, called the Battolyser®. This patented system can both store electricity and generate hydrogen.
Mattijs Slee explains: “With our technology, we can produce inexpensive, green hydrogen for the parts of the energy system that cannot be electrified. We store electricity and produce hydrogen when prices are low, and sell renewable energy when prices are high. This improves the business case for solar and wind projects and enhances the stability of the energy grid.”
Reda adds: “And it uses raw materials that are not scarce, not dependent on geopolitical factors, and fully recyclable.”
What could this technology concretely mean for the Netherlands? Mattijs Slee: “The Dutch government aims to develop 70GW of offshore wind, but this makes the business case increasingly challenging for companies, because when it’s windy, the electricity price is always lower. If you place a large Battolyser in the five industrial clusters where offshore wind energy lands, the excess wind energy can be converted into hydrogen. And when there is no wind, the Battolyser can supply power to the grid. It is important that the hydrogen network is ready in time so that industrial customers always receive hydrogen from a mix of imports and local production.”
From left to right: Reda Atibi and Mattijs Slee
Invest-NL has the capacity to finance this long-term, which provides confidence to other investors.
Mattijs SleeCEO Battolyser Systems
Approximately twenty percent of our energy consumption is electricity and eighty percent consists of molecules such as crude oil, natural gas, and coal. The production of electricity from wind and solar power and the electrification of the energy system is increasing rapidly.
However, in sectors such as the chemical industry, steel production, and aviation, electricity alone cannot suffice. Molecules are still needed here. Green hydrogen is the sustainable building block of these molecules and also offers large-scale storage for wind-still and cloudy moments.
Green hydrogen is therefore essential to make certain industries sustainable and to enable further scaling of renewable energy. However, the hydrogen market in the Netherlands is not yet taking off due to various obstacles, including unclear regulations and limited infrastructure. This hampers private project investments.
Mattijs notes that progress is faster in other countries: “In Germany, electrolysers are for example exempt from grid charges. It also doesn’t make sense to pay for storing and redistributing electricity if it actually lowers the grid costs. The Netherlands needs to take steps in this area.”
The development of the technology is capital-intensive, risky and uncertain. In this challenging market, Invest-NL is essential, believes Mattijs: “Deep tech has a long investment horizon and requires creative forms of financing to enable private investors to participate. Invest-NL's participation confirms that Battolyser Systems has system value. Invest-NL has the capacity to finance this long-term, which builds confidence among other investors.”
Reda finds this encouraging: “This is exactly what we aim for with Invest-NL. For this type of long-term investment, few financiers are willing to take such risks, and thus contribute to the size of the financing requirement. For these kinds of challenges, Invest-NL is here in the Netherlands.”
We are convinced that the hydrogen sector plays a key role in the energy transition.
Reda AtibiInvestment Manager Invest-NL
Invest-NL invested € 8.2 million in Battolyser Systems, marking a significant closure of a Series A funding round of € 30 million, alongside earlier investments from Global Cleantech Capital (GCC) and Innovation Industries. Mattijs explains: “This financing allows us to scale our activities and develop a next generation of products, including the second generation Battolyser ‘BL625’ which is scheduled to be launched in 2025. This second generation utilises Battolyser electrodes (instead of battery electrodes) and includes multiple performance and cost improvements. This step is an important milestone for the company.” Reda Atibi adds: “We believe that the hydrogen sector plays a key role in the energy transition. The investment in Battolyser Systems is a significant step in our hydrogen strategy.”
That Invest-NL, such a large system player, is involved in the Dutch energy transition has pleasantly surprised us in the collaboration.
Mattijs SleeCEO of Battolyser Systems
Reda Atibi
sr. investment manager
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