The European Commission has approved a €1.2 billion Spanish scheme aimed at boosting investments in renewable hydrogen production, supporting the transition to a net-zero economy. This scheme is funded under the State Aid Temporary Crisis and Transition Framework (TCTF) and the Recovery and Resilience Facility (RRF), following the Commission’s positive assessment of Spain’s Recovery and Resilience Plan and its subsequent adoption by the Council.
The approved scheme will support the development of renewable hydrogen with an installed capacity of at least 100 MW. Eligible investments include renewable hydrogen-derived fuels, hydrogen storage, and renewable electricity production. To qualify for the scheme, applicants must secure agreements with off-takers for at least 60% of the expected renewable hydrogen or hydrogen-derived fuel production.
Margrethe Vestager, Executive Vice-President in charge of competition policy, highlighted the importance of the scheme, stating, “This €1.2 billion 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 minimizing any potential distortions to competition.”
The financial aid will be distributed as direct grants covering investment costs, with each beneficiary determined through a competitive bidding process. The grants will be awarded by December 31, 2025.
This initiative aligns with other significant European investments in renewable hydrogen, including Germany’s €3 billion scheme for the Hydrogen Core Network (HCN), France’s €900 million scheme for biomass and renewable hydrogen, and various other schemes across the Netherlands, Italy, and Denmark.
Source:offshore-energy.biz