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EU Commission approves €400m Spanish aid scheme for green H2 auctions

The European Commission has approved a €400m Spanish State aid scheme to support the construction of up to 345 MW of electrolyser capacity through the “Auctions-as-a-Service” tool within the European Hydrogen Bank. The aid will be awarded through a competitive, transparent, and non-discriminatory bidding process overseen by the European Climate, Infrastructure, and Environment Executive Agency (CINEA) that concluded in early 2025. The scheme expects to help produce up to 221 kt of green hydrogen and avoid the equivalent of up to 1 MtCO2 emissions, contributing to Spain’s 2030 target of 12 GW of installed electrolyser capacity. The award consists of direct grants per kilogram of renewable hydrogen produced, for a period of up to 10 years. Beneficiaries must comply with EU criteria for renewable fuels of non-biological origin (RFNBOs), including demonstrating the use or financing of additional renewable electricity.

The Spanish scheme follows similar schemes like the German scheme (approved in April 2024), and most recently the Austrian and Lithuanian schemes (March 2025). The European Hydrogen Bank aims to support domestic renewable hydrogen production to meet the EU’s 2030 target of 20 Mt of hydrogen, under the REPowerEU plan.