The European Commission has endorsed a 400 million euro State aid scheme in Spain to bolster the production of renewable hydrogen, following EU State aid regulations. This initiative is pivotal in advancing the EU's Clean Industrial Deal, REPowEU Plan, and Hydrogen Strategy by expediting decarbonization and lessening reliance on Russian fossil fuels. The approved scheme is set to facilitate the establishment of up to 345 MW of electrolyzer capacity and the generation of around 221,000 tons of renewable hydrogen in Spain, subsequently averting the release of up to one million tons of CO2. It corresponds with Spain's ambition to install 12 GW of electrolyzer capacity by 2030 and fulfills the targets outlined in the Renewable Energy Directive for renewable fuels of non-biological origin (RFNBOs) in transport and industry. Financial assistance will be provided through direct grants per kilogram of renewable hydrogen manufactured, with a duration of up to 10 years. Recipients are required to adhere to EU standards for RFNBO production and assist in supplying additional renewable electricity necessary for hydrogen production. The European Commission's evaluation of the scheme under EU State aid rules concluded that it is imperative for the decarbonization of key sectors, exhibits an incentive effect, and incorporates measures to limit competition distortions. Furthermore, the scheme was acknowledged for its beneficial environmental outcomes, aligning with the objectives of the European Green Deal.