The European Commission has greenlit a €1.2bn ($1.3bn) Spanish initiative aimed at advancing the production of green hydrogen, targeting a minimum installed capacity of 100MW.

Source: h2-view

This undertaking falls under the State aid Temporary Crisis and Transition Framework (TCTF) and is geared towards establishing hubs or zones that will facilitate the shift to Net Zero. The project encompasses hydrogen and derivative production, hydrogen storage, and renewable electricity generation.

Interested parties can now apply for the Spanish program. To qualify, applicants must have agreements in place with off-takers to account for at least 60% of the anticipated hydrogen and derivative output.

The assistance will be in the form of direct grants to cover the investment expenses of the supported projects. The initiative is anticipated to be funded by the Recovery and Resilience Facility (RRF) following the Commission's endorsement of Spain's Recovery and Resilience Plan.

This €1.2bn scheme will enable Spain to accelerate the deployment of renewable hydrogen capacities, in line with the EU Hydrogen Strategy and the European Green Deal. The scheme will also help Spain reduce its dependence on imported fossil fuels, while minimising any potential distortions to competition.

Aligned with the TCTF guidelines, aid will be allocated based on a predefined scheme with a projected volume and budget. The aid sum will be determined through an equitable, transparent, and non-discriminatory competitive bidding process, with disbursements scheduled before December 31, 2025.

Recently, on July 17, the Spanish Prime Minister unveiled a €2.3bn ($2.5bn) support package to bolster the nation's energy transition.