The European Commission has approved a €400 million Spanish State aid scheme to support renewable hydrogen production through the European Hydrogen Bank using the Auctions-as-a-Service tool. This scheme will contribute to the Clean Industrial Deal and the REPowerEU Plan.
The Scheme
Spain informed the Commission of its intention to support renewable hydrogen production through the Auctions-as-a-Service tool within the European Hydrogen Bank. The approved scheme supports constructing up to 345 megawatts of electrolyser capacity and producing up to 221,000 tonnes of renewable hydrogen in Spain. This is expected to avoid up to one million tonnes of CO2. The scheme helps Spain achieve its national target of 12 gigawatts of electrolyser capacity by 2030.
The aid will be awarded through a competitive bidding process that concluded in the first quarter of 2025. This process will be overseen by the European Climate, Infrastructure and Environment Executive Agency (CINEA), which will receive, assess, and rank bids for projects in all Member States.
Under the scheme, aid will be in the form of a direct grant per kilogram of renewable hydrogen produced, with a maximum duration of ten years. Beneficiaries must comply with EU criteria for renewable fuel production.
Commissions Assessment
The Commission assessed the scheme under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union.
The Commission found that the scheme is necessary and appropriate to facilitate renewable hydrogen production and that it has positive environmental effects that outweigh any potential competition distortions.