The Spanish government has awarded €1.22 billion ($1.42 billion) in funding to seven green hydrogen clusters or valleys, as part of its “Hydrogen Valleys” programme.
The projects, located in Aragon, Andalusia, Castile and León, Catalonia, and Galicia, have a total electrolysis capacity of 2.29 gigawatts (GW), says the Ministry for Ecological Transition and Demographic Challenge (Miteco). The clusters feature 12 proposed green hydrogen production facilities, expected to produce a total of 270,000 tonnes/year.
Overall, the projects are anticipated to mobilise €5.82 billion in investments, Kallanish learns.
Aragon, with two hydrogen valley projects, has been awarded the highest grant funding of €322 million. Andalusia will receive €304m, while Castile and León, Galicia, and Catalonia have secured €261m, €170m and €165m, respectively.
While the scheme initially had a budget of €1.2 billion, Miteco says it was extended by an additional 10% to offer €1.223 billion.
To be eligible for funding, the clusters were required to have at least 100 megawatts of electrolyser capacity and guarantee purchase commitments of at least 60% of the production from offtakers.
“Green hydrogen clusters or valleys are an essential element, bringing together multiple stages of the hydrogen value chain in clustered locations – from production and storage to distribution and consumption,” the ministry says. “This takes advantage of economies of scale, the potential diversity of consumers in a single area, and the resulting multiplier effect.”
The announcement comes as Madrid this month distributed €524m ($598m) to five green hydrogen projects. With a combined capacity of 425 MW, the projects are expected to produce 55,200 t/y of green hydrogen.
Miteco did not provide further details on the project and awarded companies.
