The European Commission has approved a €400 million state aid scheme by Spain to support the production of renewable hydrogen, as part of broader EU efforts to decarbonise key sectors and meet climate goals.
The measure will support the deployment of up to 345 megawatts (MW) of electrolyser capacity and facilitate the production of up to 221,000 tonnes of renewable hydrogen in Spain. The project is expected to help avoid the emission of as much as one million tonnes of carbon dioxide, according to the Spanish government.
Aid will be distributed as direct grants, awarded per kilogram of renewable hydrogen produced, and will be provided for a period of up to 10 years. Beneficiaries must meet European Union standards for renewable fuels of non-biological origin (RFNBOs), including proof of additional renewable electricity generation or investment.
“The aid will be awarded through a competitive, transparent, and non-discriminatory bidding process that concluded in early 2025,” the Spanish government said. The process was managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA).
The Commission said the scheme is “necessary and appropriate” to promote renewable hydrogen and reduce emissions in the industrial, transport and energy sectors. It also noted the programme includes safeguards to limit any distortions to market competition.
“The aid has an incentive effect and includes safeguards to minimise competition distortions,” the Commission stated.
The Spanish initiative is part of the European Hydrogen Bank’s “Auctions-as-a-Service” tool, which allows EU Member States to channel national funding through a common auction mechanism coordinated by the EU Innovation Fund. The tool is designed to accelerate renewable hydrogen production across the bloc.
The programme follows similar schemes approved in Germany in April 2024, and in Austria and Lithuania in March 2025.
The European Hydrogen Bank is a central pillar of the EU’s REPowerEU strategy, which targets the production of 20 million tonnes of renewable hydrogen annually by 2030.
