The European Commission has given the green light to a €1.2 billion Spanish initiative aimed at boosting investments in renewable hydrogen production to facilitate the country's transition to a net-zero economy. The scheme, approved under the State aid Temporary Crisis and Transition Framework (TCTF), focuses on fostering investments in renewable hydrogen production within designated clusters or valleys. Fully financed through the Recovery and Resilience Facility (RRF), the initiative targets establishing a minimum of 100 MW of installed capacity for renewable hydrogen production. Eligible investments include the production of renewable hydrogen-derived fuels, renewable hydrogen storage, and renewable electricity production. Applicants are required to secure agreements with off-takers for a substantial portion of the anticipated production. Financial aid will be provided as direct grants to cover investment costs, allocated via a competitive bidding process. The Commission's findings highlighted that the Spanish scheme adheres to TCTF conditions by having a well-defined scheme with a specified volume and budget, determining aid amounts through a competitive bidding process, and ensuring aid is granted before December 31, 2025. The Commission deemed the scheme essential, suitable, and proportional for expediting the green transition and supporting key economic activities outlined in the REPower EU Plan and the Green Deal Industrial Plan, leading to its approval under EU State aid rules.