The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has approved a €274,2 million aid package to boost green hydrogen production in Spain . The funding, which supports four projects located in Castilla-La Mancha, Galicia, and Aragón, aims to accelerate the decarbonization of industry by replacing fossil fuels with this clean energy source. The total electrolysis capacity reaches 102,27 megawatts , distributed among the selected initiatives.
This financial injection is part of the Auctions as a Service (AaaS) mechanism, a tool that allows Spain to finance projects that had previously been evaluated by the European Commission but were excluded from the allocation of EU funds due to budget constraints. With these resources, the government aims to strengthen the country's energy independence and meet the objectives set out in the Integrated National Energy and Climate Plan (PNIEC).
Four projects, more than 100 MW of electrolysis
Among the beneficiaries, Repsol stands out, taking the lion's share with nearly €183,18 million for two facilities. The first is the Atlas project in Arteixo (A Coruña), with a 50 MW electrolyzer that will receive €133,4 million. The second is the Puertollano Hydrogen Network (P-HYNET) in Ciudad Real, with 12,27 MW and a grant of €49,79 million. Both plants will replace grey hydrogen from refineries with renewable hydrogen , following the path of other Repsol plants that are leading the way.
The remaining funding is divided between Quixotgen, promoted by Doña Urraca Energy in Villarrobledo , which receives €50,21 million for a 30 MW electrolyzer; and ZaragozaH2V, by AccionaPlug, which receives €40,89 million for 10 MW in the Aragonese capital. The distribution of funds aims for a balanced development of the technology across the region.
The final resolution from IDAE has been signed, so the developers can begin implementing the investments. According to the Ministry, these actions will contribute to reducing CO2 emissions in energy-intensive sectors, such as refining and chemicals, and to consolidating an industrial ecosystem around green hydrogen.
From European auction to national bailout
The four selected projects had passed the technical cut in the third general auction of the European Hydrogen Bank, held in 2025. However, the EU budget ran out before they could receive funding, leaving them on a waiting list. To prevent them from being dropped, the Institute for Energy Diversification and Saving (IDAE) launched a national call for proposals in May with a ceiling of €440,5 million, financed by NextGenerationEU funds.
The AaaS mechanism allows projects already assessed by the European Union's Climate, Infrastructure and Environment Executive Agency (CINEA) to access national funding without having to repeat the entire process. Subsidies are calculated based on the renewable hydrogen actually produced and certified over a maximum of ten years from commissioning.
Furthermore, projects must comply with the principle of not causing significant harm to the environment (DNSH) at all stages. This requirement ensures that hydrogen production does not generate negative environmental impacts.
A boost to the hydrogen ecosystem in Spain
With this new allocation, public support for renewable hydrogen in Spain now exceeds €3.000 billion. This figure is in addition to programs such as H2 Pioneers, H2 Value Chain, and H2 Valleys, as well as several calls for proposals for Important Projects of Common European Interest (IPCEI). All of this forms part of the Strategic Plan for Renewable Energies, Hydrogen, and Storage (PERTE).
The first auction as a service, held last year, already distributed €220 million among three other projects: Orange-Bat in Castellón, ElyseNeM-Numancia in Soria, and Acciona Plug Valle H2V in Navarra. This funding demonstrates the Government's commitment to decarbonizing the economy and creating skilled jobs related to this technology, boosting employment in green hydrogen plants.
The green hydrogen sector is poised to play a key role in the energy transition, especially in sectors that are difficult to electrify, such as heavy transport, aviation, and the steel industry. Spain has enormous renewable energy potential that could make it an exporter of clean hydrogen to Europe.
With this investment of €274,2 million, the country takes another step towards climate neutrality, although there is still a long way to go. The commissioning of these electrolysis plants will allow for the replacement of fossil hydrogen with renewable hydrogen, reducing emissions and strengthening energy independence. The commitment to green hydrogen is not a fad, but a strategic necessity for Spanish industry.
