The European Commission (EC) has approved a €1.2 billion ($1.3 billion) Spanish programme to boost investment in renewable hydrogen production.
The scheme has been approved under the Temporary Crisis and Transition Framework (TCTF) for State aid and aims to support the creation of hydrogen clusters or valleys, which are essential for Spain’s transition to a greener economy.
The scheme, which is fully financed through the Recovery and Resilience Facility (RRF), follows the positive assessment of Spain’s Recovery and Resilience Plan by the Commission and its subsequent endorsement by the European Council.
It focuses on investments in renewable hydrogen production facilities with a minimum installed capacity of 100 MW.
The supported investments may include the production of renewable hydrogen-based fuels, storage solutions and renewable electricity generation.
To qualify for the scheme, applicants must demonstrate that they have concluded agreements with customers for at least 60% of the expected production of renewable hydrogen or its derivatives.
The aid is distributed in the form of direct grants to cover the investment costs of the projects. The amount for each beneficiary is determined through a competitive bidding process.
The Commission’s assessment confirmed that the Spanish scheme is in line with the TCTF conditions, which provide that the aid must be allocated on the basis of a pre-determined volume and budget of the scheme through a transparent and non-discriminatory bidding process. The aid must also be granted before 31 December 2025.
The Commission concluded that the Spanish scheme is essential, appropriate and proportionate to accelerate the green transition and stimulate the development of key economic activities.
Margrethe Vestager, Executive Vice-President of the European Commission for Competition Policy, said: “This €1.2 billion scheme will enable Spain to accelerate the deployment of renewable hydrogen capacity, in line with the EU Hydrogen Strategy and the European Green Deal.
“The programme will also help Spain reduce its dependence on imported fossil fuels, while minimising potential distortions to competition.”
In February 2024, the EC established an industrial alliance to promote the development of small modular reactors, with a view to their commercial deployment in Europe in the early 2030s.
“European Commission greenlights €1.2 billion worth of Spanish renewable hydrogen” was originally created and published by Energy technologya brand of GlobalData.
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