EC okays EUR 220m in state aid for Cobra's green H2 project in Spain

Spanish engineering company Cobra Instalaciones y Servicios SA stands to receive EUR 220 million (USD 214.7m) in state aid to produce green hydrogen in Spain after the European Commission (EC) approved the disbursement of public funds.

The EC said on Thursday that it has approved, under EU state aid rules, Spain’s measure to support Cobra’s project for the installation of two electrolysers with a combined capacity of 205 MW. The aid will be extended in the form of a direct grant.

Cobra plans to install the equipment in Cartagena and Castellon to produce green hydrogen for customers in energy-intensive and hard-to-abate industries, such as refineries and the ceramics sector, the EC said. Construction would take place in stages, and the first electrolyser could be operating as of 2023.

The two electrolysers are expected to produce around 8,550 tonnes of green hydrogen and 6,840 tonnes of oxygen per year, according to the EU executive.

Cobra is a beginner in the green hydrogen arena, having never dealt with the molecule before. Spain selected its proposal as part of the call for hydrogen-related Important Projects of Common European Interest (IPCEIs). Given the characteristics and goals of Cobra’s project, the EC found it was best to evaluate the public support for it under the Guidelines on State aid for climate, environmental protection and energy 2022, the Commission said.

(EUR 1.0 = USD 0.975)

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