The European Commission has given the green light to a €1.2 billion scheme proposed by Spain to support investments in renewable hydrogen production. The scheme, notified under the State aid Temporary Crisis and Transition Framework (TCTF), aims to foster the transition towards a net-zero economy by focusing on hydrogen clusters or valleys. The funding will come from the Recovery and Resilience Facility, following the Commission's positive assessment of Spain's Recovery and Resilience Plan. Investments supported by the scheme will include renewable hydrogen production, storage, and renewable electricity generation. The aid will be provided through direct grants, covering the investment costs of projects, with each beneficiary determined through a competitive bidding process. The Commission found the scheme to be in line with TCTF conditions, ensuring transparency and non-discrimination. The approval is seen as crucial to accelerate the green transition and support economic activities related to the implementation of the REPower EU Plan and the Green Deal Industrial Plan. This decision aligns with EU State aid rules, marking a significant step towards achieving sustainability goals and fostering a green economy.