Renewable hydrogen has become a key focus of Spain's energy transition. The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has just given this sector a further boost by awarding €274,2 million to four green hydrogen production projects located in Galicia, Castilla-La Mancha, and Aragon. This funding, which comes from the NextGenerationEU funds, aims to replace fossil-based hydrogen with clean hydrogen in energy-intensive industrial processes.
The decision is significant: the four projects have a combined electrolysis capacity of 102,27 megawatts (MW) and had been shortlisted in the third general auction of the European Hydrogen Bank, but were excluded from Brussels' funding when the EU budget ran out. To ensure they didn't fall by the wayside, the Institute for Energy Diversification and Saving (IDAE) launched the second national call for proposals under the Auction-as-a-Service (AaaS) mechanism in May, with a maximum budget of €440,5 million. Now, all four projects have received the final approval that allows them to access the funding.
Repsol, the big beneficiary of green hydrogen subsidies
The oil company Repsol has secured the lion's share of this funding round. The company will receive approximately €183,18 million, nearly 67% of the total , to develop two of the four selected projects. The largest is the Atlas project, located in Arteixo (A Coruña), which will feature a 50 MW PEM electrolyzer and will receive €133,39 million. It is designed to produce approximately 60.634 tons of green hydrogen at Repsol's plants over ten years, replacing the gray hydrogen currently used in the refining processes at the Galician industrial complex.
Repsol's second project is the Puertollano Hydrogen Network (P-HYNET) in Ciudad Real, which will receive €49,79 million in funding. This initiative involves the installation of a 12,27 MW electrolyzer at the Puertollano industrial complex, where it will produce approximately 22.130 tons of renewable hydrogen over a decade. As with the Galician project, the hydrogen generated will replace fossil-based hydrogen in refining operations, reducing CO₂ emissions and facilitating the production of fuels and chemicals with a lower carbon footprint. Both projects are part of Repsol's strategy to transform its refineries into multi-energy centers.
Quixotgen and ZaragozaH2V complete the renewable hydrogen map
The other two selected projects are smaller but no less important. Quixotgen, promoted by Doña Urraca Energy in Villarrobledo (Albacete), will receive €50,21 million to install a 30 MW electrolyzer. This initiative, which will position Villarrobledo as a leader in green hydrogen production , is aimed at producing renewable hydrogen for industrial applications and replacing fossil fuels in energy-intensive processes. Meanwhile, ZaragozaH2V, developed by AccionaPlug in the Aragonese capital, will receive €40,89 million in funding and will have an electrolysis capacity of 10 MW.
The subsidies are granted based on the renewable hydrogen actually produced and certified as a renewable non-biological fuel (RNBF), over a maximum period of ten years from the start of operation of each facility. Furthermore, the projects must comply with the European principle of not causing significant harm to the environment (DNSH) at all stages. This condition ensures that the aid is not allocated to initiatives that could have a negative impact on the environment.
The European context and the commitment to industrial decarbonization
These funds are not being distributed in isolation. IDAE has already allocated nearly €3.000 billion through programs such as H2 Pioneers, H2 Value Chain, H2 Valleys, and several IPCEI calls for proposals , demonstrating the Government's strong commitment to renewable hydrogen as a key technology for decarbonizing industry, heavy transport, and other sectors that are difficult to electrify. This strategy is part of the PERTE (Renewable Energy, Renewable Hydrogen, and Storage Plan) and the Renewable Hydrogen Roadmap, which sets electrolysis capacity targets for 2030 and is part of the objective of having a 100% renewable electricity system by 2050.
In the first national auction of the AaaS mechanism, three other Spanish projects were awarded €220 million: Orange-Bat by SmartEnergy in Onda (Castellón), ElyseNeM-Numancia in Garray (Soria), and Acciona Plug Valle H2V in Sangüesa (Navarra). With this latest allocation, the Government continues to expand public support for a sector considered a priority for the country's energy independence and for the creation of an industrial and technological ecosystem around green hydrogen.
Meanwhile, in the Basque Country, the company Nortegas is also moving in this direction with the H2SAREA project, which has received a grant from the Basque Government's HAZITEK program. This initiative aims to demonstrate the technical feasibility of injecting green hydrogen into existing natural gas distribution networks, with a blend of up to 20% H2, leveraging existing infrastructure to accelerate the decarbonization of the energy system. This commitment reinforces Spain's position as one of the emerging hubs for renewable hydrogen in Europe.
With this injection of funds, Spain is reinforcing its leadership in the European race for green hydrogen, with projects that will not only reduce COâ‚‚ emissions in key industrial sectors, but also consolidate a national value chain linked to this technology. The combination of public funding, public-private partnerships, and a favorable regulatory framework puts the country in a privileged position to capitalize on the opportunities offered by this new hydrogen economy.
