BAKU, Azerbaijan, April 16. The European Commission has approved a 400 million euro Spanish State aid scheme designed to support the production of renewable hydrogen, in line with EU State aid rules, Trend reports.
The scheme will contribute to the EU’s Clean Industrial Deal, REPowerEU Plan, and Hydrogen Strategy by accelerating decarbonization and reducing dependence on Russian fossil fuels.
The approved scheme will support the construction of up to 345 MW of electrolyzer capacity and the production of up to 221,000 tons of renewable hydrogen in Spain. This is expected to prevent the emission of up to one million tons of CO2. It aligns with Spain's goal to install 12 GW of electrolyzer capacity by 2030 and meets targets set in the Renewable Energy Directive for renewable fuels of non-biological origin (RFNBOs) in transport and industry.
Support will take the form of direct grants per kilogram of renewable hydrogen produced, lasting up to 10 years. Beneficiaries must meet EU criteria for RFNBO production, including contributing to additional renewable electricity required for hydrogen production.
The Commission assessed the scheme under EU State aid rules and concluded that it is necessary for the decarbonisation of key sectors, has an incentive effect, and includes safeguards to minimize competition distortions. The scheme was deemed to have positive environmental impacts, supporting the European Green Deal.