Spain's Green Transition Boost: €1.2bn Scheme for Renewable Hydrogen Investment
Key Ideas
  • The European Commission approved a €1.2bn Spanish scheme to support investments in renewable hydrogen production, aligning with the EU Hydrogen Strategy and the European Green Deal.
  • Funded through the Recovery and Resilience Facility, the scheme will focus on establishing hydrogen clusters essential for Spain's transition to a greener economy.
  • Applicants must secure agreements with off-takers for at least 60% of the renewable hydrogen production to qualify for the direct grants covering investment costs.
  • The scheme is designed to expedite Spain's green transition, reduce fossil fuel dependence, and promote key economic activities, in line with EU policies and competition regulations.
The European Commission has given the green light to a €1.2bn Spanish scheme aimed at boosting investments in renewable hydrogen production. This scheme, approved under the Temporary Crisis and Transition Framework, will be entirely funded through the Recovery and Resilience Facility. It focuses on supporting the establishment of hydrogen clusters, which are deemed crucial for Spain's transition to a greener economy. The scheme's main target is to invest in renewable hydrogen production facilities with a minimum capacity of 100MW. To be eligible for the funding, applicants must have secured agreements with off-takers for a significant portion of the anticipated hydrogen production. The aid will be provided as direct grants to cover the investment costs, with the amount determined through a competitive bidding process. The European Commission's review confirmed that the Spanish scheme meets the required conditions and aligns with the EU Hydrogen Strategy and the European Green Deal. The goal is to accelerate the deployment of renewable hydrogen capacities, reduce fossil fuel reliance, and ensure compliance with competition regulations. The approval of this scheme highlights Spain's commitment to sustainability and positions it to play a leading role in the green energy transition within the EU.
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