The European Commission has approved a €400m ($455m) Spanish state aid programme to support renewable hydrogen production through the European Hydrogen Bank’s ‘Auctions-as-a-Service’ tool, part of the EU's broader push for decarbonisation and energy independence.

The scheme will fund the construction of up to 345MW of electrolyser capacity and enable the production of as much as 221,000t of renewable hydrogen in Spain.

The aid, to be awarded through a competitive bidding process, will be provided as a direct grant per kg of renewable hydrogen produced and will last for up to ten 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 programme's approval. The aid will support Spain’s target of installing 12GW electrolyser of capacity by 2030.

Under a separate initiative, the Spanish government recently awarded funding of €1.21b  to a shortlist of seven projects totalling nearly 2.3GW of electrolysis capacity. The projects, which will mostly deploy alkaline electrolyser technology, span 11 facilities located in the regions of Aragon, Andalusia, Castile and Leon, Catalonia and Galicia, and are worth around €5b in total investments.

The grants were allocated as part of Spain’s H2 Valles programme, which aims to create hydrogen clusters in large industrial hubs.

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Author: Stuart Penson