The European Commission has approved a €400m ($452.6m) Spanish state aid scheme to support renewable hydrogen production through the European Hydrogen Bank’s auctions-as-a-service tool.

Under the auctions-as-a-service approach, member states can opt to utilise the EU-wide auction system provided by the Innovation Fund to distribute a specified portion of their national funding to renewable hydrogen production projects within their borders.

Spain aims to construct up to 345MW of electrolyser capacity, producing up to 221,000 tonnes of renewable hydrogen. This project is expected to avoid up to one million tonnes of CO₂ emissions.

The scheme supports Spain’s goal of installing 12GW of electrolyser capacity by 2030, contributing to the EU’s renewable energy directive targets.

The scheme aligns with the Clean Industrial Deal and REPowerEU Plan, aimed at decarbonising EU industries, reducing reliance on Russian fossil fuels and advancing the clean energy transition.

Spain will be awarded the aid through a competitive bidding process that concluded in the first quarter of 2025 and was overseen by the European Climate, Infrastructure and Environment Executive Agency (CINEA).

Companies planning new electrolysers in Spain can apply for support, which will be provided as a direct grant per kilogram of renewable hydrogen produced.

The aid will last for a maximum of ten years, requiring beneficiaries to comply with EU criteria for renewable fuels of non-biological origin (RFNBOs).

This involves contributing to the deployment or financing of additional renewable electricity required for hydrogen production.

The European Hydrogen Bank, run by the Innovation Fund, aims to facilitate EU-domestic production and imports of renewable hydrogen, targeting 20 million tonnes by 2030.

The hydrogen auctions are financed through EU emissions trading system revenues, supporting the transition to climate neutrality.