€1.2 Billion Spanish Scheme to Boost Renewable Hydrogen Production
Key Ideas
- The European Commission approved a €1.2 billion Spanish scheme to support investments in renewable hydrogen production, aiding in the transition to a net-zero economy.
- The scheme will fund projects in hydrogen clusters or valleys, requiring an installed capacity of at least 100 MW for renewable hydrogen production.
- Applicants must secure agreements with off-takers for at least 60% of the expected renewable hydrogen production to be eligible for support under the scheme.
- The aid will be granted through direct grants based on a competitive bidding process to accelerate the green transition and align with EU State aid rules.
The European Commission has given the green light to a €1.2 billion Spanish scheme aimed at supporting investments in the production of renewable hydrogen, contributing to the shift towards a net-zero economy. The scheme, part of the State aid Temporary Crisis and Transition Framework, will be funded through the Recovery and Resilience Facility following the approval of Spain's Recovery and Resilience Plan. It focuses on backing investments in renewable hydrogen, including the production of hydrogen-derived fuels, renewable hydrogen storage, and renewable electricity. To qualify for support, applicants must have agreements with off-takers covering 60% of the expected production. Aid will be provided in the form of direct grants determined through a competitive process. The Commission found the scheme aligns with the TCTF conditions, supporting the acceleration of the green transition and the implementation of key EU plans. Margrethe Vestager highlighted that the scheme will advance Spain's renewable hydrogen capacities, in line with EU strategies, reducing fossil fuel dependency and promoting fair competition.