The European Commission has given the green light to a €1.2 billion Spanish scheme aimed at boosting investments in the production of renewable hydrogen. The scheme, part of Spain's efforts to transition towards a net-zero economy, will focus on establishing hydrogen clusters or valleys. The funds for this initiative will come from the Recovery and Resilience Facility, following the Commission's positive assessment of Spain's Recovery and Resilience Plan. The approved scheme will particularly support projects with a minimum capacity of 100 MW for renewable hydrogen production. Eligible investments under this scheme include renewable hydrogen-derived fuels, storage solutions, and renewable electricity production. To qualify for assistance, applicants must secure agreements with off-takers to cover a significant portion of the expected hydrogen output. The aid provided will be in the form of direct grants, with the allocation for each beneficiary determined through a competitive bidding process. The Commission's assessment concluded that the Spanish scheme adheres to the conditions outlined in the State aid Temporary Crisis and Transition Framework, ensuring transparency and non-discrimination in the allocation of aid. The decision to approve the aid measure was based on the necessity, appropriateness, and proportionality of the scheme to accelerate the green transition and support key economic activities crucial for the implementation of EU initiatives like the REPower EU Plan and the Green Deal Industrial Plan. Overall, the Commission's approval signifies a significant step towards advancing renewable hydrogen production in Spain and aligning with the EU's goals for a sustainable and low-carbon future.