The European Commission has given the green light to a €1.2bn Spanish scheme dedicated to the investigation and advancement of green hydrogen production. Under the State aid Temporary Crisis and Transition Framework (TCTF), this initiative intends to establish clusters or valleys that will aid in the transition to Net Zero. The primary objectives of the project involve the production of hydrogen and its derivatives, as well as hydrogen storage and the generation of renewable electricity. Applicants for the Spanish scheme are now invited to apply, subject to the condition of having secured agreements with off-takers covering a minimum of 60% of the hydrogen and derivatives output. The aid will be provided in the form of direct grants that will cover the investment expenses of the supported projects. The funding for this endeavor is expected to come from the Recovery and Resilience Facility (RRF), following a positive evaluation of Spain's Recovery and Resilience Plan by the Commission. The aid will be distributed according to specific criteria: a definite volume and budget, determined through a competitive bidding process that is fair, transparent, and non-discriminatory, with a deadline set for aid distribution by the end of 2025. Margrethe Vestager, the European Commission's Executive Vice-President overseeing competition policy, expressed optimism about the scheme, highlighting how it will facilitate the rapid expansion of renewable hydrogen capacities in Spain, aligning with the EU's Hydrogen Strategy and the European Green Deal. The scheme is also expected to help Spain diminish its reliance on imported fossil fuels and prevent any potential competition drawbacks. Additionally, the Spanish Prime Minister's recent announcement of a €2.3bn package to support the nation's energy transition complements this initiative, showcasing the country's firm commitment to a greener and more sustainable energy sector.