Spain’s green hydrogen industry receives €1.2 billion state aid approval
Spain has recently received approval from EU competition officials for €1.2 billion in government support for its renewable hydrogen industry, marking a significant step in the country’s ambition to become a major producer of green hydrogen. This move is in line with Europe’s goal of transitioning away from fossil fuels towards more sustainable energy sources.
Funded entirely from Madrid’s share of the EU recovery fund, the state aid will be used to develop ‘hydrogen valleys’ across the country, with production plants of 100 megawatts or more eligible to apply for support. Green hydrogen is produced using renewable electricity to split water into oxygen and hydrogen, offering a near-zero carbon footprint.
The aid will be disbursed by the end of 2025 through a competitive bidding system, accelerating Spain’s progress towards EU strategic goals of reducing dependence on imported fossil fuels and transitioning to a net-zero economy. Spain’s target of 11 gigawatts of electrolyser capacity for green hydrogen production is the highest in Europe, with Germany following closely behind at 10 GW.
The European Commission has allowed deviation from its usual prohibition of national support for domestic industries in this case, recognizing the importance of green hydrogen production in achieving a sustainable energy future. The endorsement has been welcomed by industry groups such as Hydrogen Europe, who see Spain as a key player in the transition to a hydrogen economy.
With ambitious plans for green hydrogen production and a commitment to reducing carbon emissions, Spain is positioning itself as a leader in sustainable energy production. The approval of substantial state aid marks a significant milestone in the country’s efforts to become a key producer of green hydrogen in Europe.
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