BAKU, Azerbaijan, September 19. Spain is positioning itself as a leader in the green hydrogen revolution, driven by its established dominance in renewable energy, says Rystad Energy, an independent research and business intelligence company, based in Norway, in its latest outlook, Trend reports.
The country already generates over 50 percent of its electricity from renewable sources, thanks to significant wind and solar capacity. Now, Spain is set to leverage that strength to achieve its ambitious target of 11 GW of installed electrolyzer capacity by 2030 - the highest goal within the EU.
However, to meet this goal, Spain will require additional backing through subsidy programs. Currently, the nation is on track to reach 5 GW by 2030, a solid start but short of the target. Germany, which has set a similar goal of 10 GW by 2030, is projected to reach 4.5 GW, following closely behind Spain.
Spain's optimal conditions for renewable energy, alongside strong government policies, have made it one of the most cost-effective regions in Europe for green hydrogen production. While the global hydrogen market has yet to fully meet early investor expectations, Spain is leading the charge with projects such as the Puertollano green hydrogen plant, which boasts a capacity of 20 MW. The outlook for the next decade appears promising, as most green hydrogen projects in the country are considered low-risk and on schedule for completion.
Government support has already spurred significant progress. For instance, BP’s decision to move forward with the first 25-MW phase of its Castellón refinery hydrogen plant marks an important milestone. The plant could eventually expand to 2 GW by 2035.
Spain’s hydrogen sector also benefits from substantial funding. The European Hydrogen Bank (EHB) has awarded subsidies to three major Spanish projects as part of its pilot auction, which attracted a total of 130 bids across Europe, including 46 from Spain. This funding is reinforced by a €794 million state aid package under the EU’s IPCEI Hy2Use program, aimed at building large-scale electrolyzers and transportation networks for low-carbon hydrogen. Recently, the Spanish government announced an additional €2.3 billion in subsidies, including €1.2 billion dedicated to renewable hydrogen hubs and €750 million for strengthening the green technology supply chain.
Spain’s aggressive push into the hydrogen market puts it in direct competition with other major European players, including Germany, France, and the Netherlands, who have also launched billion-dollar funding initiatives.