Spain pumps EUR 794m of state aid into green H2 IPCEIs at home

Hydrogen tanks on route to Puertollano, Spain. Image by Iberdrola (handout)

The Spanish government on Tuesday approved the disbursement of EUR 794 million (USD 859.5m) in state aid to support the development and construction of seven green hydrogen projects in Spain that were previously selected in the EU’s IPCEI Hy2Use programme.

Spain’s seven proposals were among the 35 Important Projects of Common European Interest (IPCEI) selected by the European Commission in September 2022 in line with the two themes of the Hy2Use programme -- construction of new infrastructure and promoting the uptake of green hydrogen by the hard-to-decarbonise industry.

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The Spanish Hy2Use projects will add 652.2 MW of combined electrolysis capacity, mobilise EUR 1.141 billion immediately and more than EUR 6 billion in total investment over their lifetime, Spain’s ministry for the ecological transition said.

Five of the selected projects include the installation of high-capacity electrolysers in industrial hubs, such as ports and other complexes, creating green hydrogen valleys. These will be located in the regions of Andalusia, Asturias, Castile-La Mancha, the Basque Country and Murcia.

The remaining two projects will be located in the region of Aragon. Their aim is to produce green hydrogen for use in the production of fertilisers and other chemical compounds.

The full list of projects and the beneficiaries is presented in the table below:

Project:	Location in Spain:	Electrolysis capacity:	State aid amount (in million EUR)	Beneficiary:
ES46 "Ver-Amonia"	Aragon - Teruel	25 MW	53	Fertinagro - IAM CAECIUS SL (EDP - Tervalis)
ES47 "Green H2 Los Barrios"	Andalusia - Cadiz	100 MW	78	H2 Los Barrios SA (EDP)
ES48 "Asturias H2 Valley"	Asturias - Abono	100 MW	78	EDP
ES50 "Proyecto de hidrogeno verde en Magallon	Aragon - Zaragoza	7.2 MW	28	Endesa - Enel Green Power
ES52 "Hidrogeno renovable para la produccion de amoniaco y fertilizantes verdes"	Castile-La Mancha - Ciudad Real	220 MW Puertollano I - 20 MW Puertollano II - 200 MW	242	Iberdrola
ES53 "Bilbao Large Scale Electrolyzer"	Basque Country - Biscay	100 MW	160	Bay of Biscay Hydrogen (Petronor - Repsol)
ES54 "Cartagena Large Scale Electrolyzer"	Murcia - Cartagena	100 MW	155	Cartagena Hydrogen Network SL (Repsol)
TOTAL:		652.2 MW	EUR 794m

220 MW

Puertollano I - 20 MW

Puertollano II - 200 MW

(EUR 1.0 = USD 1.082)