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 state aid Temporary Crisis and Transition Framework (TCTF), focuses on supporting the establishment of hydrogen clusters or valleys in Spain to facilitate the country's shift towards a more sustainable and eco-friendly economy. The funding for this initiative will be entirely sourced from the Recovery and Resilience Facility (RRF). The scheme targets investments in renewable hydrogen production facilities with a minimum capacity of 100MW and includes support for the production of hydrogen-derived fuels, storage solutions, and renewable electricity generation. To be eligible for this scheme, applicants must demonstrate agreements with off-takers for at least 60% of the expected production of renewable hydrogen or its derivatives. The aid awarded will be in the form of direct grants to cover the expenses of the projects, with the specific amount for each beneficiary determined through a competitive bidding process. The European Commission's assessment confirmed that the Spanish scheme complies with the TCTF conditions, ensuring transparency and non-discrimination in the allocation of aid. The aid distribution is required to be completed by the end of 2025. The approval of this scheme is seen as crucial in accelerating Spain's green transition and promoting the growth of vital economic sectors. The scheme has received positive feedback from the EU, with Margrethe Vestager emphasizing that it will help Spain enhance its renewable hydrogen capacities in line with the EU Hydrogen Strategy and the European Green Deal. Additionally, the initiative is expected to reduce Spain's reliance on imported fossil fuels while maintaining fair competition practices. In a broader context, the European Commission's move towards supporting renewable hydrogen production aligns with its commitment to sustainable energy practices and environmental goals. This approval signifies a significant step towards achieving a more eco-friendly and energy-independent future for Spain.