Spain's €400 Million State Aid Scheme to Boost Renewable Hydrogen Production
Key Ideas
- The European Commission has approved a €400 million state aid scheme in Spain to support the production of renewable hydrogen.
- The scheme aims to build up to 345MW of electrolyser capacity, producing 221,000 tonnes of renewable hydrogen, reducing one million tonnes of CO2.
- Beneficiaries will receive direct grants based on renewable hydrogen production per kilogram for a maximum of 10 years, contributing to Spain's target of 12GW electrolyser capacity by 2030.
- The aid requires compliance with EU criteria for renewable fuels of non-biological origin, promoting the deployment of additional renewable electricity for hydrogen production.
The European Commission has given the green light to a €400 million state aid scheme in Spain to bolster the production of renewable hydrogen. The 'Auction-as-a-Service' initiative is set to back the construction of up to 345MW of electrolyser capacity, facilitating the generation of about 221,000 tonnes of renewable hydrogen within the country. This effort is projected to slash around one million tonnes of CO2 emissions and aid Spain in reaching its goal of installing 12GW of electrolyser capacity by the year 2030. Under the program, beneficiaries will be granted direct financial assistance per kilogram of renewable hydrogen manufactured, with funding guaranteed for a maximum period of 10 years. To qualify for these grants, recipients will need to demonstrate adherence to EU standards for the production of renewable fuels of non-biological origin (RFNBOs), which encompasses supporting the expansion or funding of the supplementary renewable electricity necessary for producing the hydrogen endorsed through the scheme. This initiative signals a positive step towards promoting renewable energy production, reducing carbon footprint, and aligning with Spain's strategic energy objectives.