The Spanish government has greenlit subsidies amounting to nearly 800 million euros ($865.52 million) for significant green hydrogen initiatives, announced Energy Minister Teresa Ribera on Tuesday.
Spain aims to position itself as a frontrunner in Europe's green hydrogen sector, leveraging abundant solar and wind resources to produce clean energy.
The subsidies will support seven projects across Spain, identified by the European Commission as regionally valuable, with a combined electrolysis capacity of 652 megawatts (MW), Ribera informed reporters. These projects are anticipated to attract investments exceeding 6 billion euros over their operational lifespan.
Ribera highlighted that the funded projects will focus on producing green hydrogen close to end-users. They will be situated in five hydrogen valleys, large industrial clusters integrating hydrogen production into various sectors such as fertilizer manufacturing and refinery operations.
Green hydrogen, crucial for Europe's future decarbonization efforts, remains economically challenging without financial support due to its production costs.
Approximately 40% of the subsidies will benefit two projects managed by oil company Repsol, each targeting 100 MW of electrolysis capacity. Spanish utility Iberdrola will receive nearly a third of the funds, amounting to 242 million euros, for projects in Puertollano, aiming to develop 220 MW of electrolysis capacity. Iberdrola, Europe's largest utility, recently adjusted its green hydrogen ambitions following funding delays for some previously announced projects earlier this year.
Spain's draft climate strategy outlines ambitious targets, including increasing electrolysis capacity to 11 gigawatts (GW) by 2030, a significant rise from the previous target of 4 GW.
