Spain Receives €400 Million for Renewable Hydrogen Production Boost
Key Ideas
  • The European Commission has approved €400 million in state aid to Spain for the development of renewable hydrogen production, contributing to reducing dependence on fossil fuels and emissions.
  • The funding will support the construction of up to 345 MW of electrolysis capacity, aiming to produce around 221 thousand tons of renewable hydrogen and prevent approximately one million tons of CO2 emissions.
  • Projects must adhere to EU requirements for renewable fuels of non-fossil origin, and the support will be provided through a direct subsidy for each kilogram of hydrogen produced over a ten-year period.
  • The initiative, part of the European Hydrogen Bank's Auctions-as-a-Service mechanism, aligns with Spain's target of installing 12 GW of electrolyzers by 2030, promoting transparency and competition in the selection process.
The European Commission has granted Spain €400 million in state aid to boost the country's renewable hydrogen production. This support is provided through the European Hydrogen Bank's Auctions-as-a-Service mechanism, aiming to facilitate a 'green' transition and lessen reliance on fossil fuels. The funding will enable the establishment of up to 345 MW of electrolysis capacity, with a production goal of approximately 221 thousand tons of renewable hydrogen, thereby helping to prevent around one million tons of CO2 emissions. To qualify for the subsidy, projects must meet EU standards for renewable fuels of non-fossil origin, particularly regarding electricity sources. The selection process, overseen by the European Agency for Climate, Infrastructure and Environment (CINEA), ensures fairness and competitiveness among applicants. This initiative is part of Spain's objective to have 12 GW of electrolyzers operational by 2030. Additionally, this effort aligns with the broader goals of REPowerEU and the EU Green Deal, complementing similar programs for Germany, Austria, and Lithuania. The European Commission's approval of a €5 billion program for Germany to aid companies in decarbonizing their production processes further underlines the EU's commitment to sustainable practices.
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