The European Commission has given the green light to a €1.2bn Spanish scheme aimed at accelerating the production of green hydrogen in the country. The project, approved under the State aid Temporary Crisis and Transition Framework, is set to explore the development of clusters or valleys that will facilitate the transition to Net Zero. This initiative will encompass activities such as hydrogen and its derivatives production, hydrogen storage, and the generation of renewable electricity. Applicants looking to participate in this scheme need to have agreements in place with off-takers to account for at least 60% of the hydrogen and derivatives that will be generated. The aid provided through this scheme will be in the form of direct grants to cover the investment costs associated with the supported projects. The funding for this endeavor is expected to come from the Recovery and Resilience Facility, following the positive evaluation of Spain's Recovery and Resilience Plan by the Commission. The aid distribution will adhere to the principles of the Temporary Crisis and Transition Framework, ensuring a fair and competitive process. Margrethe Vestager, the European Commission's Executive Vice-President overseeing competition policy, emphasized that this substantial scheme will facilitate Spain's swift deployment of renewable hydrogen capacities, aligning with the EU Hydrogen Strategy and the European Green Deal objectives. She noted that the project will aid Spain in decreasing its dependence on imported fossil fuels while keeping competition in the market intact. The broader aim of the Spanish scheme is to contribute to the country's energy transition goals, with a focus on reducing the environmental impact of energy production and establishing a more sustainable and competitive energy landscape. This initiative reflects Spain's commitment to embracing cleaner energy sources and fostering economic recovery through investments in green technologies.