Spain launches programme to award EUR 150m for green H2 projects

Spain’s ministry for the ecological transition on Tuesday launched a new incentives programme for the domestic green hydrogen industry, seeking to distribute EUR 150 million (USD 160.9m) in state aid for “pioneering” projects directed at hard-to-decarbonise sectors.

Grants will be awarded in a competitive procedure managed by the Institute for Diversification and Saving of Energy (IDAE), a Spanish government agency. The maximum grant amount per application is capped at EUR 15 million, provided that the bidder is willing to invest over EUR 1 million in the project, the ministry said.

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A minimum investment threshold per project is set at EUR 1 million.

Applications can be submitted between June 1 and July 31 this year.

To be eligible, projects have to combine green hydrogen production, distribution and uses at the same location. In case of production, electrolysis facilities can have up to 50 MW of capacity, the ministry said.

Project proposals will be graded on criteria such as encouraging the participation of small and medium-sized enterprises, enabling emissions reduction, promoting circular economy, job creation and gender equality, having a positive impact on Spain’s island territories, areas of the so-called “just transition” or those at risk of depopulation.

Green hydrogen from the awarded projects should find its way to the industrial and heavy-duty mobility sectors, or be used in stationary applications in places such as ports, airports, logistics centres and storage systems with re-electrification.

The latest competition comes on the heels of the first pioneering H2 programme, which finalised two months ago with 19 projects securing awards.

(EUR 1.0 = USD 1.073)