Spain has been granted a €400m state aid scheme by the European Commission to bolster its renewable hydrogen production. The initiative will see the construction of up to 345MW of electrolyser capacity, capable of generating 221,000 tonnes of renewable hydrogen annually, thereby mitigating one million tonnes of CO₂ emissions. This effort is aligned with Spain's ambition to establish 12GW of electrolyser capacity by 2030, supporting the EU's renewable energy objectives and the Clean Industrial Deal and REPowerEU Plan. The aid will be distributed through a competitive process monitored by the European Climate, Infrastructure and Environment Executive Agency, providing direct grants based on the volume of renewable hydrogen produced. Beneficiaries are obligated to adhere to EU standards for renewable fuels of non-biological origin and contribute to the deployment of additional renewable electricity for hydrogen production. The project, facilitated by the European Hydrogen Bank, is part of the broader EU strategy to achieve climate neutrality by 2050, with the hydrogen auctions financed by revenues from the EU emissions trading system.