European Commission Approves EUR 400 Million Subsidy for Renewable Hydrogen Development in Spain
Key Ideas
- European Commission approves a national subsidy of EUR 400 million to support renewable hydrogen production in Spain.
- The subsidy aims to fund up to 345 MW of electrolyzer capacity, producing 221,000 tons of green hydrogen, reducing 1 million tons of carbon emissions.
- Funding will be provided per kilogram of hydrogen over a ten-year period, in compliance with EU renewable fuel regulations.
- The project will be executed by the European Climate, Environment and Infrastructure Executive Agency, with selections expected by Q1 2025.
The European Commission has given the green light to a substantial EUR 400 million subsidy to advance the development of renewable hydrogen production in Spain. This initiative, utilizing the Auctions-as-a-Service mechanism of the European Hydrogen Bank, aims to bolster the capacity of electrolyzers by up to 345 MW, resulting in the generation of 221,000 tons of green hydrogen and a consequential reduction of around 1 million tons of carbon emissions. The subsidy will be dispensed as direct funding per kilogram of hydrogen for a decade, subject to applicants meeting EU renewable fuel regulations. The execution of the project falls under the responsibility of the European Climate, Environment and Infrastructure Executive Agency (CINEA), with the selection process targeted for completion in the early months of 2025. The European Union has underlined the compatibility of this plan with national aid regulations, ensuring no disruption to market competition, and emphasizing its role in advancing the EU Green Deal and REPowerEU strategic objectives.