Spain is making no secret of its aim to become a leading green hydrogen producer within the European Union’s (EU) decarbonization strategy.
A recent funding approval has moved the country closer to achieving this goal.
Significant Funding for Green Hydrogen Production
The European Commission has officially approved €1.2 billion in funding to support Spain’s nascent green hydrogen industry.
This substantial financial backing aligns with Spain’s ambitious plans to become a major player in renewable hydrogen production.
Spain’s Strategy: A Part of EU’s Post-Pandemic Recovery
The funding for Spain’s green hydrogen initiative is part of a larger program that will be entirely financed by the country’s share of the EU recovery fund, established in the wake of the COVID-19 pandemic.
This funding will be used to construct production plants with a minimum capacity of 100 megawatts, with a focus on developing “hydrogen valleys” across Spain.
Green Hydrogen Production: Leveraging Spain’s Renewable Resources
Green hydrogen is produced using renewable energy sources, and Spain boasts significant potential for building new solar and wind farms to power electrolyzers. These devices split water molecules into oxygen and hydrogen, leaving virtually no carbon footprint.
Competitive Bidding and Aid Disbursement
Applications for support from production projects in Spain are already underway through a competitive bidding process. The approved funding will be disbursed by the end of 2025.
The European Union has made an exception to its generally strict ban on national support for domestic industry in this specific area, recognizing the importance of supporting the EU’s decarbonization efforts.
Accelerating the Growth of Green Hydrogen in the EU
Margrethe Vestager, the Commission vice president responsible for competition policy, emphasized that Spain’s strategy will help accelerate the construction of green hydrogen production facilities across the EU, aligning with the bloc’s overall strategic goals.
“The scheme will also help Spain reduce its dependence on imported fossil fuels, while minimizing any potential distortions to competition,” stated Vestager.