This initiative, part of the State Aid Temporary Crisis and Transition Framework (TCTF), will be entirely funded by the Recovery and Resilience Facility (RRF), following the Commission's approval of Spain's Recovery and Resilience Plan and its adoption by the Council.
The scheme aims to support investments in renewable hydrogen production with a minimum installed capacity of 100 MW. It also includes projects related to renewable hydrogen-derived fuels, hydrogen storage, and renewable electricity production. To qualify for funding, applicants must secure agreements with off-takers for at least 60% of the renewable hydrogen or hydrogen-derived fuels they plan to produce.
Funding will be provided in the form of direct grants covering investment costs, determined through a competitive bidding process, and must be awarded by December 31, 2025. Margrethe Vestager, the Executive Vice-President in charge of competition policy, remarked that this scheme would help Spain accelerate its renewable hydrogen capacity deployment, aligning with the EU Hydrogen Strategy and the European Green Deal, while also reducing dependence on imported fossil fuels and minimizing competition distortions.
In related developments, in 2024, the European Commission also approved two German schemes: a €3 billion scheme for constructing the Hydrogen Core Network (HCN) and a €350 million scheme for renewable hydrogen production. Additionally, a €900 million French scheme was approved to support investments in biomass and renewable hydrogen for energy and fuel production.
