Spain's €1.2 Billion State Aid Scheme to Boost Renewable Hydrogen Production
Key Ideas
  • The European Commission approved a €1.2 billion state aid scheme to support the production of renewable hydrogen in Spain under the Temporary Crisis and Transition Framework.
  • Applicants must secure agreements with offtakers covering at least 60% of the hydrogen production to be eligible for the aid.
  • Spain aims to replace 25% of its annual 500,000 tonnes of fossil-based hydrogen consumption with green hydrogen to reduce dependence on imported fossil fuels.
  • The country is also implementing a €2.3 billion plan to accelerate the transition to clean energy, including subsidies for green energy and hydrogen production from renewable sources.
The European Commission has given approval for a €1.2 billion state aid scheme in Spain aimed at supporting the production of renewable hydrogen. This scheme falls under the State aid Temporary Crisis and Transition Framework (TCTF) and is intended to assist investments in hydrogen production with a minimum capacity of 100 megawatts. To be eligible for the aid, applicants are required to have agreements with offtakers securing at least 60% of the hydrogen to be produced. Margrethe Vestager, the Executive Vice-President overseeing competition policy, mentioned that this initiative aligns with the EU Hydrogen Strategy and the European Green Deal, aiming to help Spain reduce its reliance on imported fossil fuels. Spain's goal is to substitute 25% of the current 500,000 tonnes of fossil-based hydrogen used by its industry annually with green hydrogen. The country is also set to implement a €2.3 billion plan to facilitate the transition to clean energy, offering subsidies for green energy sectors and promoting the production of hydrogen from sustainable sources.
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