Spain at the forefront of the race for green hydrogen: EU approves massive state aid

This article was originally published in English

European Commission competition officials give green light 1,200 million euros in state aid for the developing Spanish industry renewable hydrogen, which will provide a new impetus to the country’s efforts to become a major producer of this environmentally friendly fuel.

According to the plan, which will be entirely financed by the Madrid part EU Recovery Fund

created as a result of the pandemic, Manufacturing facilities with a capacity equal to or greater than 100 megawatts may qualify for government assistance. develop “hydrogen valleys” throughout the country.

Green hydrogen is produced using renewable electricity -Spain has huge untapped potential for increasing solar and wind energy production. splitting water into oxygen and hydrogenwhich can be used directly as an energy source or as a feedstock for the production of synthetic liquid fuels with a near-zero carbon footprint.

When will help arrive?

State aid will be allocated until the end of 2025 through a system of competitive tendering. The EU allows deviations from its normally strict prohibition on national aid to domestic industry where it furthers key EU policy objectives – in this case transition to a net zero economy– without unduly distorting the single market.

Margrethe Vestager, Commission Vice President for Competition Policy, said that The Spanish regime will accelerate the creation of clean hydrogen production plants in line with EU strategic objectives..

In its draft national energy and climate plan for 2030, which all EU members were required to submit and which is currently being finalised, Spain’s target is 11 gigawatts of electrolyser capacity Green hydrogen production was highest in Europe, with only Germany coming close with 10 GW.

Real The EU’s target is to produce 10 million tonnes of green hydrogen per year by 2030.although EU auditors warned last week that the target was unrealistic.

Trade association Hydrogen Europebased in Brussels and whose members include oil multinationals involved in producing hydrogen from natural gas and wind turbine manufacturers, welcomed EU support for Spanish aid plan.

“Spain’s statement is further proof that The Iberian Peninsula is on track to become a hydrogen economy giant.

“The general director of the pressure group, Yorgo Hatzimarkakis, told Euronews about this.

“It is very promising that the Vice President of the Spanish Government, who presented these plans, Teresa Ribera“will probably become a European commissioner, hopefully for climate or energy issues,” added the former German MEP.