The European Commission has granted approval to a €1.2 billion Spanish scheme aimed at supporting investments in the production of renewable hydrogen. This scheme, submitted under the State aid Temporary Crisis and Transition Framework (TCTF), will play a crucial role in fostering the transition towards a net-zero economy. The investments are set to be targeted at hydrogen clusters or valleys to facilitate the shift to a more sustainable energy landscape. The funding for this initiative will be sourced entirely from the Recovery and Resilience Facility (RRF), following a positive evaluation of Spain's Recovery and Resilience Plan by the Council. The scheme will particularly focus on supporting investments in renewable hydrogen production with a minimum capacity of 100 MW. Eligible investments may include the production of renewable hydrogen-derived fuels, storage solutions, and renewable electricity generation. To qualify for support, applicants must have secured agreements with off-takers to cover a significant portion of the expected production. The aid will be provided in the form of direct grants to cover the investment costs, allocated through a competitive bidding process. The European Commission's assessment determined that the Spanish scheme fulfills the TCTF conditions, ensuring transparency and nondiscrimination. This initiative is considered essential to accelerate the green transition and facilitate the development of key economic activities in line with EU strategies such as the REPower EU Plan and the Green Deal Industrial Plan, ultimately contributing to the collective goal of achieving a sustainable and environmentally friendly economy.