The European Commission has approved €400 million in state aid to support Spain’s renewable hydrogen production, marking a major step in the EU’s push to decarbonize its energy systems and reduce reliance on fossil fuels. The funding falls under the Auctions-as-a-Service mechanism of the European Hydrogen Bank, aimed at accelerating the green energy transition across member states, reports GMK Center.
According to the Commission’s press release, the initiative will enable the development of up to 345 MW of electrolysis capacity and the production of up to 221,000 tons of renewable hydrogen, potentially avoiding around 1 million tons of CO₂ emissions. This directly supports Spain’s national goal to deploy 12 GW of electrolyzers by 2030.
The aid will be issued as direct subsidies per kilogram of renewable hydrogen produced, with a ten-year limit per project. Only projects that meet the EU’s Renewable Fuels of Non-Biological Origin (RFNBO) standards—particularly in terms of using clean electricity—will be eligible.
Project selection will be managed by CINEA (the European Climate, Infrastructure and Environment Executive Agency) through a competitive, transparent auction process, ensuring equal access and preventing market distortion.
The Spanish hydrogen support scheme forms part of the wider REPowerEU plan and the EU Green Deal, which aim to strengthen energy security and sustainability in the bloc. Similar national initiatives have recently been approved in Germany, Austria, and Lithuania.
In a related move, the EC also gave the green light to Germany’s €5 billion industrial decarbonisation plan, which will help EU ETS-covered companies transition to low-emission operations using 15-year bilateral carbon contracts.
With this funding, Spain reinforces its position as a key player in Europe’s emerging hydrogen economy, while the EU strengthens its ambition to become a global leader in clean energy.
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