Applicants need agreements with offtakers to cover at least 60% of the hydrogen produced
Applicants need agreements with offtakers to cover at least 60% of the hydrogen produced
The European Commission has approved a €1.2 billion state aid scheme to support the production of renewable hydrogen in Spain.
The scheme, approved under the State aid Temporary Crisis and Transition Framework (TCTF) will support investments in the production of hydrogen with an installed capacity of at least 100 megawatt (MW).
Investments supported may encompass the production of renewable hydrogen-derived fuels, renewable hydrogen storage, and production of renewable electricity.
To be eligible, applicants should have secured agreements with offtakers to cover at least 60% of the hydrogen or renewable hydrogen-derived fuel to be produced.
Margrethe Vestager, Executive Vice-President in charge of competition policy, said the scheme will enable Spain to accelerate the deployment of renewable hydrogen capacities, in line with the EU Hydrogen Strategy and the European Green Deal, and help Spain reduce its dependence on imported fossil fuels.
Spain aims to replace 25% of the current 500,000 tonnes of fossil-based hydrogen consumed by the Spanish industry annually, with green hydrogen.
Last week Spanish Prime Minister Pedro Sanchez announced a new plan worth €2.3 billion ($2.5 billion) to boost the country’s transition to clean energy, including subsidies for green energy industries and hydrogen made from renewable power. The plan will also include measures to help agriculture, infrastructure and villages transition to green energy.
Masdar has reached an agreement with Endesa S.A. to become a partner for 48 operational solar plants, comprising 2.5 gigawatts (GW) of renewable energy assets, subject to regulatory approvals.
Yesterday (July 25), the European Commission approved a €1.5 billion French scheme to support the production of sustainable biomethane to foster the transition towards a Net Zero economy (click here).
Read more on hydrogen and CCUS in the August issue of gasworld global