Spain Approves $455 Million in Aid to Boost Renewable Hydrogen Production
(P&GJ) — The European Commission has approved a €400 million (approximately $455 million) Spanish state aid program to support renewable hydrogen production through the European Hydrogen Bank’s “Auctions-as-a-Service” tool, part of the EU's broader push for decarbonization and energy independence.
The scheme will fund the construction of up to 345 megawatts of electrolyzer capacity and enable the production of as much as 221,000 tonnes of renewable hydrogen in Spain. Officials estimate this could prevent up to one million tonnes of carbon dioxide emissions.
The aid, to be awarded through a competitive bidding process, will be provided as a direct grant per kilogram of renewable hydrogen produced and will last up to 10 years. Projects must comply with EU renewable fuel standards, including criteria for emissions reductions and renewable energy sourcing.
The Commission cited improved environmental outcomes, minimal market distortion, and strategic alignment with the European Green Deal as reasons for the program's approval. The aid will support Spain’s target of installing 12 gigawatts of electrolyzer capacity by 2030 and contribute toward broader EU hydrogen and energy transition goals.
Spain's program follows similar national initiatives by Germany, Austria, and Lithuania and reflects growing interest in harmonizing national and EU funding through the Hydrogen Bank’s auction framework.
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