To accelerate decarbonization plans, the European Commission has approved a national subsidy totaling EUR 400 million to support the development of renewable hydrogen production in Spain. 

The plan, which will be implemented through the Auctions-as-a-Service mechanism of the European Hydrogen Bank, is expected to subsidize up to 345 MW of electrolyzer capacity, producing 221,000 tons of green hydrogen, which is estimated to reduce carbon emissions by about 1 million tons.

The subsidy will be provided in the form of direct funding per kilogram of hydrogen for a period of up to ten years. Applicants must demonstrate that hydrogen production complies with EU renewable fuel regulations. 

The project will be implemented by the European Climate, Environment and Infrastructure Executive Agency (CINEA), and the selection process is scheduled to be completed in the first quarter of 2025. 

The EU stressed that the plan is in line with national aid regulations, will not interfere with fair competition in the market, and will help promote the EU Green Deal and REPowerEU strategic goals.