Climate Insider Brief:
- Spanish Prime Minister Pedro Sánchez announced a €2.3 billion subsidy program, with €1.2 billion allocated for renewable hydrogen hubs, set to launch this month.
- An additional €750 million will be invested in the broader renewable energy supply chain, including manufacturing sites for wind turbines, solar panels, batteries, heat pumps, and electrolysers.
- The remaining €350 million will support community energy schemes and the installation of renewables, particularly in agricultural areas, aiming to enhance local energy resilience and sustainability.
Madrid, Spain — In a significant move to bolster the nation’s renewable energy sector, Spanish Prime Minister Pedro Sánchez announced that his government will allocate €2.3 billion ($2.5 billion) towards four new subsidy programs. This announcement was made during a speech to Congress on Wednesday.
The substantial investment will see €1.2 billion dedicated to the development of renewable hydrogen hubs. This state aid, expected to be launched this month, is in addition to the €794 million already announced earlier this month under the EU’s Important Projects of Common European Interest (IPCEI) program, which was approved by the European Commission in September.
In addition to the hydrogen hubs, €750 million of the total fund will be directed towards strengthening the wider renewable energy supply chain. This includes the establishment and expansion of manufacturing sites for critical green technologies such as wind turbines, solar panels, batteries, heat pumps, and electrolysers.
The remaining €350 million will support community energy schemes and the installation of renewable energy systems, with a particular focus on agricultural areas. These initiatives are expected to enhance local energy resilience and promote sustainable practices within rural communities.
Spain is positioned to become a leader in the production of affordable green hydrogen, leveraging its strong solar resources. Earlier this year, gas grid operator Enagas indicated that, based on a call for interest in hydrogen pipeline infrastructure, Spain could potentially produce 2.5 million tonnes of renewable hydrogen annually by 2030, utilizing 23.3 GW of electrolysers.
While some pilot projects, such as Iberdrola’s 20 MW Puertollano electrolyser, have already commenced operations, the broader industry has been hesitant to make final investment decisions on large-scale facilities without assured subsidies. The newly announced funds aim to provide the necessary financial support to overcome this hurdle, enabling Spain to advance its renewable hydrogen ambitions.
Prime Minister Sánchez’s announcement underscores Spain’s commitment to transitioning to a green economy and highlights the critical role of state aid in accelerating the adoption and development of renewable energy technologies.
SOURCE: Fuel Cell China
