The Spanish Ministry for Ecological Transition and the Demographic Challenge (MITECO) has announced the final allocation of €1.223 billion in NextGenEU funds to establish large-scale renewable hydrogen valleys across the country. Seven major projects located in Aragon, Andalusia, Castile and León, Catalonia, and Galicia will benefit from the funding, reports FCW.
These projects, part of the “H2 Valles” initiative, will feature a combined electrolysis capacity of 2,292.8 megawatts spread across 12 sites. Together, they are expected to produce 269,142 tons of renewable hydrogen annually and generate private investments worth €5.821 billion.
Aragon, hosting two projects—including one jointly with Catalonia—will receive the highest funding at €322 million. Other regional allocations include €304 million for Andalusia, €261 million for Castile and León, €170 million for Galicia, and €165 million for Catalonia. Three selected projects are based in municipalities facing population decline, including Andorra (Teruel), Cubillos del Sil, and La Robla in León.
The funding exceeds the original €1.2 billion budget, as it was increased by up to 10% under the RePowerEU Addendum of Spain’s Recovery, Transformation and Resilience Plan (PRTR).
All selected projects surpass the required 100 MW minimum electrolysis threshold and have secured purchase agreements for at least 60% of the renewable hydrogen they will produce. Many also include renewable energy generation units and additional facilities to synthesize, store, or transport green fuels such as e-methanol, ammonia, or e-kerosene for aviation.
Most of the projects will use alkaline electrolysis technology. Evaluation criteria also included environmental and social factors such as job creation, gender equality, training, and emission reductions.
The initiative is coordinated by the Institute for Energy Diversification and Savings (IDAE) and aims to integrate renewable hydrogen into Spain’s broader energy system. The goal is to reduce carbon emissions in heavy industries and transport while creating economic opportunities.
Hydrogen valleys are expected to optimize production, storage, and consumption within close geographic proximity—no more than 100 km between facilities—enabling synergies and lowering costs through shared infrastructure.
The hydrogen valley program supports component 31 of the PRTR and aligns with the European Commission’s RePowerEU strategy. It is a cornerstone of Spain’s Strategic Project for Renewable Energies, Renewable Hydrogen, and Storage (PERTE ERHA) and contributes directly to the goals set in Spain’s Renewable Hydrogen Roadmap and updated National Integrated Energy and Climate Plan (PNIEC), which aim for 12 GW of electrolysis capacity by 2030.
Spain currently consumes over 500,000 tons of fossil-based “gray hydrogen” each year. With the launch of these seven large-scale projects—and over 100 developments already underway across the country—Spain is moving rapidly to replace fossil fuels in key sectors with cleaner, renewable hydrogen.
