EC clears Spain's EUR-1.2bn hydrogen support scheme

Spain has received the approval of the European Commission (EC) for a state aid measure that will support the domestic green hydrogen industry through a EUR-1.2-billion (USD 1.3bn) subsidy scheme.

The plan was cleared under the State aid Temporary Crisis and Transition Framework (TCTF). According to the EC’s statement on Thursday, the programme is “necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the REPowerEU plan and the Green Deal Industrial Plan.”

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The scheme envisages holding auctions to distribute direct grants covering investment costs related to the proposed green hydrogen projects, which should have an installed capacity of above 100 MW each. The aid is planned to be granted before December 31, 2025.

The eligible proposals should be focused on the production of renewable hydrogen-derived fuels, green hydrogen storage and renewable power generation. Applicants will be required to have agreements with off-takers to cover at least 60% of the renewable hydrogen or renewable hydrogen-derived fuel expected to be produced.

Funding for the programme, which is seen to promote investments in the production of renewable hydrogen in hydrogen clusters, will come under Spain’s Recovery and Resilience Facility.

(EUR 1.0 = USD 1.086)