The European Commission has approved a $452.6 million (€400 million) aid scheme to support renewable hydrogen production in Spain, as part of the EU's broader clean energy transition strategy.

The funding will be distributed through the European Hydrogen Bank via its auctions-as-a-service tool, allowing EU member states to channel national funding through a centralized auction platform.

Spain plans to develop up to 345MW of electrolyser capacity, capable of producing 221,000 tonnes of renewable hydrogen. The project is projected to prevent up to one million tonnes of COâ‚‚ emissions and supports Spain's target of deploying 12GW of electrolyser capacity by 2030.

Aid will be granted through a competitive bidding process, completed in Q1 2025 and overseen by the European Climate, Infrastructure and Environment Executive Agency (CINEA). Support will be given as direct grants per kilogram of renewable hydrogen produced.

To qualify, projects must meet EU criteria for renewable fuels of non-biological origin (RFNBOs) and contribute to expanding renewable electricity generation used in hydrogen production.

This funding aligns with the EU's REPowerEU Plan and the Clean Industrial Deal, both focused on reducing dependency on Russian fossil fuels and achieving climate neutrality. The Innovation Fund, which manages the European Hydrogen Bank, finances these initiatives via EU emissions trading system revenues.

Source: msn.com