The Spanish government has authorized the allocation of EUR 794 million (USD 859.5m) in state aid to facilitate the development and construction of seven green hydrogen projects across Spain.
These projects were previously selected under the European Union's Important Projects of Common European Interest (IPCEI) Hy2Use programme.
Initiated by the European Commission in September 2022, the IPCEI Hy2Use programme aims to advance green hydrogen infrastructure and promote its adoption within challenging-to-decarbonize industries.
Spain's selected projects will collectively add 652.2 MW of electrolysis capacity, mobilizing an immediate EUR 1.141 billion in funding and projecting over EUR 6 billion in total investment throughout their operational lifespan, according to the Ministry for the Ecological Transition.
Five of the initiatives involve deploying high-capacity electrolysers in industrial clusters, including ports and other complexes, establishing what are termed as green hydrogen valleys. These sites will be situated in Andalusia, Asturias, Castile-La Mancha, the Basque Country, and Murcia.
Additionally, the remaining two projects in Aragon aim to produce green hydrogen for applications in fertilizer and chemical compound production.
This strategic allocation of state aid underscores Spain's commitment to bolstering its green hydrogen capabilities, aligning with broader EU efforts to achieve sustainable energy objectives.