Dutch industrial companies qualify for VEKI subsidies if they invest in measures that reduce CO₂ emissions within their own operations, and without the subsidy, the payback period on that investment would exceed five years. The scheme targets businesses in the manufacturing sector and related industries that are taking concrete steps toward decarbonizing their production processes. Below, we unpack exactly who qualifies, what projects are eligible, and how Iron Fuel Technology fits into the picture.
What does the VEKI subsidy actually cover?
The VEKI subsidy supports industrial companies in the Netherlands that invest in measures leading to an absolute reduction of CO₂ emissions by 2030. The subsidy covers investments where the payback period without financial support would be longer than five years, making it specifically designed to close the financial gap between fossil fuel operations and cleaner alternatives.
In practical terms, VEKI bridges the cost difference between continuing to run on fossil fuels and making the switch to a lower-carbon approach. The subsidy is not a blanket grant, it is calibrated to the actual financial shortfall of your project, taking into account both investment and operational costs. The goal is to make decarbonization economically viable for companies that are genuinely ready to act but face a real financial barrier.
It is worth noting that CO₂ under VEKI is defined broadly. It includes CO₂-equivalent emissions, meaning greenhouse gases such as methane (CH₄), nitrous oxide (N₂O), HFCs, PFCs, and SF₆ are all factored in when calculating your project’s emission reduction impact.
Which companies are eligible to apply for VEKI?
VEKI is open to industrial companies in the Netherlands that fall under CBS Standard Business Classification (SBI) main category C (Industry) or category E, specifically subgroups 37 and 38.2, covering waste and wastewater processing. The company must invest in a production installation located in the Netherlands and retain ownership of that installation throughout the subsidy period.
Beyond the sector classification, there are several practical conditions a company must meet:
- The basic engineering of the project must be completed before applying
- The project must start within one year of receiving the subsidy decision
- The installation must be commissioned within four years of the project start
- The installation must then operate for at least ten years
- After those ten years, the installation must be able to operate profitably without subsidy
- The company must not be classified as an “undertaking in difficulty” under EU state aid rules
That last point catches some companies off guard. Even a financially healthy business with a solid bank balance can be classified as an undertaking in difficulty under European Commission rules, based on equity calculations. It is worth checking this early in your preparation.
What types of projects qualify for VEKI funding?
VEKI funds projects that deliver a direct and measurable reduction in CO₂ and other greenhouse gas emissions within industrial production processes in the Netherlands. Projects fall into two main categories: Category A covers direct CO₂ savings within the production process, including large-scale process efficiency improvements, electrification, and hydrogen. Category B covers the replacement of primary fossil carbon within the product chain.
There are also clear exclusions. The following types of projects do not qualify for VEKI support:
- Applications with a bid higher than €300 per tonne of CO₂
- Projects focused on new infrastructure construction
- Combined heat and power (CHP) energy production
- Hydrogen production via electrolysis
- Electricity production from hydrogen
- Recycling projects where the recycling quality is lower than the standard method
The focus is firmly on production installations that make existing industrial processes cleaner, not on energy generation infrastructure as such. If your project replaces fossil fuel combustion in a manufacturing process with a lower-carbon alternative, you are likely in the right territory.
How much VEKI subsidy can a company receive?
The amount of VEKI subsidy a company can receive depends on the gap between the cost price of the cleaner production method and the market price of the output. There is no fixed percentage, the subsidy is calculated individually for each project using mandatory calculation models provided by the Dutch government.
For larger industrial transformation projects, there is a related scheme called NIKI (Nationale Investeringsregeling Klimaatprojecten Industrie), which targets projects requesting a minimum of €30 million in financial support. NIKI is designed for companies making substantial, long-term investments in climate-positive production installations. The subsidy under NIKI covers both investment and operational costs, and the final subsidy amount is only confirmed after the project is completed, based on actual costs minus revenues.
For smaller projects, those with subsidy requests between €30,000 and €125,000, a board declaration and final report are sufficient for settlement. Larger projects require an auditor’s statement. In all cases, you must use the official calculation tools to quantify both your greenhouse gas reduction and the subsidy you need. These tools are mandatory, not optional.
How do you apply for a VEKI subsidy in the Netherlands?
Applying for a VEKI subsidy requires careful preparation well before the application window opens. The process follows a structured sequence, and arriving at the application stage without the right documentation will cost you time you may not have.
- Complete basic engineering: Before you can apply, the basic engineering of your project must be finished. This phase forms the foundation for all calculations.
- Calculate CO₂ reduction: Use the official VEKI or NIKI CO₂ emission reduction calculation method to quantify your project’s impact.
- Calculate required subsidy: Use the official subsidy calculation model to determine how much support your project needs.
- Prepare a project plan: Document your project in a structured plan that meets the scheme’s requirements.
- Submit a climate plan: This outlines your broader decarbonization strategy and how this project fits within it.
- Obtain an auditor’s statement: Required for larger projects to verify financial standing and project costs.
- Check your company’s financial status: Confirm you do not qualify as an “undertaking in difficulty” under EU rules.
- Submit during the open application period: Application windows are time-limited. In 2026, a new round is expected in the autumn, keep an eye on official channels for the exact dates.
Even when the application window is closed, you can already request a project idea assessment (projectideetoets). This is a useful early step that gives you a sense of whether your project is on the right track before you invest heavily in preparation.
Can iron fuel technology qualify for VEKI support?
Yes, iron fuel technology is a strong candidate for VEKI support. Projects that replace fossil fuel combustion in industrial heat generation with a low-carbon alternative fall squarely within the scope of Category A of the VEKI scheme, direct CO₂ savings within the production process. An Iron Fuel Boiler that replaces a natural gas-fired boiler delivers exactly this kind of measurable, absolute emission reduction.
The fit is particularly relevant for companies in sectors like food and beverage, specialty chemicals, and pulp and paper, industries where the decarbonization of industrial heat is urgent but electrification and hydrogen remain too costly or constrained by grid congestion and infrastructure limitations. Iron fuel operates independently of the electricity grid, which removes one of the most common barriers to clean heat investment under current market conditions.
From a VEKI eligibility perspective, the key criteria align well. An iron fuel project involves investing in a production installation in the Netherlands, the installation remains in company ownership, and the technology delivers a direct and quantifiable reduction in CO₂ emissions. The payback period for clean heat technology, without subsidy support, typically exceeds five years, which is precisely the threshold VEKI is designed to address. The EU ETS also adds financial pressure that makes the CAPEX versus OPEX calculation increasingly favorable for low-carbon heat solutions over time.
How RIFT helps with VEKI-eligible industrial heat projects
We develop and deliver Iron Fuel Boilers that are purpose-built for industrial companies looking to replace fossil fuel-fired heat with a circular, carbon-free alternative. For sustainability managers exploring VEKI funding, our technology offers a concrete, calculation-ready solution that fits the scheme’s core criteria.
Here is why companies considering VEKI are looking at Iron Fuel Technology:
- Zero direct CO₂ emissions during combustion – with only 10 kg of CO₂ per MWhth stemming from the pilot safety flame, the emission reduction impact is substantial and measurable
- Up to 95% energy efficiency – outperforming many conventional fossil fuel systems
- Grid-independent operation – no reliance on electricity infrastructure, removing a key barrier where grid congestion is a concern
- Drop-in compatible – designed to complement existing boiler setups, reducing integration complexity and CAPEX risk
- Reliable, long-term fuel supply – backed by a fuel supply agreement model, giving you security of supply alongside decarbonization
- Demonstrated at TRL7 – proven at megawatt-industrial scale in the Netherlands, with the first commercial contract already signed
Whether you are in the early stages of building your VEKI business case or already preparing your application, we are happy to explore how Iron Fuel Technology fits your situation. Get in touch with our team to start the conversation.
Frequently Asked Questions
Can a company apply for VEKI if it has already started its project?
No — VEKI requires that your project has not yet started at the time of application. However, completing basic engineering before applying is a mandatory requirement, so there is a careful balance to strike. If you have already begun construction or procurement beyond the engineering phase, your project will likely be ineligible. This makes early planning and timing critical: use the project idea assessment (projectideetoets) to validate your approach before committing to major expenditures.
What is the difference between VEKI and NIKI, and how do I know which one applies to my project?
The key distinction is the size of the subsidy requested. VEKI covers projects where the subsidy need falls below the NIKI threshold, while NIKI is specifically designed for large-scale industrial climate projects requiring a minimum of €30 million in support. If your project involves a major transformation of production infrastructure — such as a full site-wide switch from fossil fuel heat to iron fuel or hydrogen — NIKI may be the more appropriate route. For most individual boiler replacement or process decarbonization projects, VEKI is the relevant scheme.
What is the 'undertaking in difficulty' classification, and how do I check whether it applies to my company?
Under EU state aid rules, a company can be classified as an ‘undertaking in difficulty’ based on specific financial indicators — most commonly when accumulated losses have eroded more than half of the subscribed share capital. This classification is based on equity calculations, not cash flow or profitability, which means even operationally healthy companies can be caught out. You should run this check early using the European Commission’s definition and, if in doubt, consult a legal or financial advisor familiar with EU state aid regulations before investing heavily in your VEKI application.
How long does the VEKI application and approval process typically take, and when should I start preparing?
The VEKI process requires significant lead time. Basic engineering must be complete before you apply, and application windows are time-limited — the next round is expected in autumn 2026. From submission to receiving a subsidy decision, processing can take several months. Realistically, companies should begin preparation at least 12 to 18 months before their target application window, particularly for complex projects involving new combustion technology like iron fuel. Submitting a project idea assessment (projectideetoets) as early as possible is a practical first step that costs little but can save significant time later.
What happens if my actual CO₂ reduction or project costs differ from what I projected in my VEKI application?
VEKI settlements are based on actual realized costs and verified emission reductions, not just projections. For smaller projects (subsidy requests between €30,000 and €125,000), a board declaration and final report are sufficient for settlement. Larger projects require an auditor’s statement to verify actual costs and revenues. If your project underperforms against the stated CO₂ reduction targets, the final subsidy amount may be adjusted accordingly — which is why using the official calculation tools accurately and conservatively during the application phase is essential.
Can multiple companies within the same corporate group each apply for VEKI separately?
Each application must relate to a specific production installation owned by the applying company, and that company must retain ownership throughout the subsidy period. In principle, separate legal entities within a group that each own distinct eligible production installations could apply independently. However, EU state aid rules on cumulation apply, meaning the total public support received across a group for the same project or purpose is subject to limits. It is advisable to seek specialist advice if your corporate structure involves multiple entities that may be investing in related decarbonization projects.
Is iron fuel technology mature enough to meet VEKI's requirement that the installation operates profitably without subsidy after ten years?
This is a fair and important question. VEKI requires that after the ten-year operational period, the installation can run profitably without further subsidy support. Iron Fuel Technology has been demonstrated at TRL7 — megawatt-industrial scale — and the first commercial contract has already been signed, which speaks to its commercial readiness. Over a ten-year horizon, rising EU ETS carbon prices and falling iron fuel costs are expected to make the economics increasingly favorable compared to fossil fuel alternatives, supporting the long-term profitability case that VEKI requires.
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This content was generated with the help of AI and it may contain mistakes