An €11m ($12.2m) grant has been awarded for what would be Europe’s largest green-hydrogen project.

The 20MW electrolyser at the Djewels project in the city of Delfzijl, Netherlands, would use an electric current to split water molecules into oxygen and 3,000 tonnes of green hydrogen per year.

This carbon-free hydrogen would then be combined with carbon dioxide captured elsewhere to create “renewable methanol”, saving 27,000 tonnes of CO2 emissions annually.

The project — to be owned and operated by Dutch gas grid operator Gasunie and local chemicals company Nouryon — will utilise an innovative high-pressure, high-performance alkaline electrolyser built by French manufacturer McPhy.

Funding comes from the Fuel Cells and Hydrogen Joint Undertaking (FCH-JU), a public-private partnership between the European Commission, industry and research organisations.

The world’s largest electrolyser currently in operation is a 6MW project in Linz, Austria, while the largest plant under construction is a 10MW unit being built by Shell and ITM Power in Wesseling, Germany.

Nouryon and Gasunie are “studying options” to increase the electrolyser capacity from 20MW to 60MW in order to produce sustainable jet fuel. They are set to take a final investment decision on the Djewels project later this year.