Wedoany.com Report-Apr. 16, The European Commission has approved a €400 million Spanish state aid program to promote renewable hydrogen production through the European Hydrogen Bank’s “Auctions-as-a-Service” mechanism. The initiative, managed by the Spanish government, supports the development of renewable hydrogen projects in Spain.
The program will facilitate the construction of up to 345MW of electrolyser capacity, enabling the production of approximately 221,000 tonnes of renewable hydrogen. According to authorities in Madrid, this effort is expected to prevent the release of up to one million tonnes of CO₂, contributing to Spain’s goal of achieving 12GW of installed electrolyser capacity by 2030.
Financial support will be provided as direct grants per kilogram of renewable hydrogen produced, available for up to 10 years. Recipients must adhere to EU standards for renewable fuels of non-biological origin (RFNBOs), including proving the use or financing of additional renewable electricity sources.
The allocation of funds was determined through a competitive, transparent, and fair bidding process, finalized in early 2025. The process was supervised by the European Climate, Infrastructure, and Environment Executive Agency (CINEA). A Spanish government representative stated: “This scheme strengthens Spain’s commitment to sustainable energy and supports our national renewable hydrogen targets.”
The European Commission noted that the program is essential for advancing renewable hydrogen production and decarbonizing sectors such as industry, transport, and energy. The initiative is designed to encourage participation while including measures to limit any adverse effects on market competition.
This Spanish program follows similar efforts in other EU countries, including a German scheme approved in April 2024 and Austrian and Lithuanian schemes approved in March 2025. The European Hydrogen Bank aims to bolster domestic renewable hydrogen production to achieve the EU’s target of 20 million tonnes by 2030, as outlined in the REPowerEU plan.
The “Auctions-as-a-Service” model enables EU member states to distribute national funds via the EU-wide hydrogen auction system, managed by the Innovation Fund. Spain’s program is a key component of this broader strategy, enhancing the country’s role in the transition to clean energy and supporting regional sustainability objectives.
