MITECO publishes the regulatory bases to finance large green hydrogen valleys with 1.200 million

The Spanish Ministry for Ecological Transition and the Demographic Challenge (MITECO) has published the order of bases of the aid programme that impulses the creation of large renewable hydrogen valleys, which is endowed with 1.200 million euros from the NextGenEU funds, which can be consulted here. The aim of this line of incentives is to boost large-scale production and consumption of green and electrolytic hydrogen, and its derivated fuels, in order to impulse the full integration of this energy carrier into the spanish energy mix. In this way, progress can be made in the decarbonisation of different industrial sectors of our economy, contributing to the competitiveness of our industry.

This line of aid, within the framework of the Strategic Project for the Recovery and Economic Transformation of Renewable Energies, Renewable Hydrogen and Storage (PERTE ERHA) of the Recovery, Transformation and Resilience Plan (PRTR), is managed on a competitive basis by the Institute for Energy Diversification and Saving (IDAE), a body dependent on the MITECO. It represents a qualitative and quantitative leap in the prospects for production and use of renewable hydrogen and its derivatives in Spain.

The renewable hydrogen clusters or valleys are essential to achieve the objectives by bringing together, in the same location, multiple stages of the hydrogen value chain, from production, storage and distribution to various users, such as the heavy transport sector and industry, all sectors that are difficult to decarbonise.

This objective is the hallmark of the line of incentives for renewable hydrogen valleys and is preceded by the success of the previous calls for H2 Pioneers, H2 Value Chain and the Important Projects of Common European Interest (IPCEI). This commitment to renewable hydrogen has meant that, in barely two years, Spain is already in a position to launch aid that multiplies the green hydrogen generation capacity of the first projects financed by several orders of magnitude.

LARGE-SCALE PROJECTS AND PRIOR COMMITMENT OF PURCHASE

The aim of this new line of aid, the call for applications for which will soon be announced by the IDAE, is to create renewable hydrogen valleys, large centres or industrial areas of generation and consumption, which will allow greater use to be made of this energy vector, thanks to the advantages of economy of scale and the multiplier effect that this may have. To this end, projects must meet the following requirements:

• Prior commitment to purchase 60% of production from consumers.
• Guarantee that the hydrogen produced is of renewable origin.
• Provision of high-capacity electrolysers, with more than 100 MW.
• Possibility of forming clusters of projects with electrolysers of at least 50 MW.
• In addition, the maximum amount of aid for a single company or project is set at one third of the available budget, i.e. 400 million.

The aim is to highlight the value of solid and important projects, not only in technical terms, but also in environmental and socio-economic terms, so that the award will take into account job creation, local economic development, emissions reduction, gender equality, supply strategy with elements of technological and industrial resilience, etc.

AMBITION IN THE GOALS

Renewable hydrogen is one of the key levers of energy policy in Spain. Other incentive programmes have already been deployed and have been in high demand.

The 30 projects of the Pioneers line: 300 million to provide renewable hydrogen on a smaller scale to industry, heavy transport and logistics.
47 other renewable hydrogen technology and value chain projects (including IPCEI Hy2Tech projects): 230 million earmarked for technologies, factories or innovation capacities for renewable hydrogen with technology designed and manufactured in Spain.
The seven strategic IPCEI Hy2Use projects, which have recently been awarded 794 million.

The promotion of the creation of renewable hydrogen clusters, linked to component 31 of the PRTR, envisaged in the PERTE EHRA, is a determining factor in achieving the objectives of the Renewable Hydrogen Roadmap – 4 GW in 2030 – whose ambition is increased in the proposal to update the Integrated National Energy and Climate Plan (PNIEC 2023-2030), which envisages 11 GW of electrolysis capacity by 2030.