Spain and Portugal Secure Significant Funding for Renewable Hydrogen Projects through European Union

The Iberian Peninsula has emerged as a dominant force in the first community hydrogen auction, securing significant funding through the European Hydrogen Bank. Three Spanish projects, including Catalina and Hysencia in Aragon, along with El Alamillo in Andalusia, have collectively received 263 million euros of the 720 million euros in subsidies allocated by Brussels. Additionally, two Portuguese projects and two from Nordic countries, Norway and Finland, have also been chosen as beneficiaries of the funds generated from CO₂ emissions trading.

The seven winning projects will receive financial support to bridge the gap between the cost of hydrogen production and the revenue generated from it. The Iberian Peninsula has a competitive advantage in the renewable energy sector, making it an ideal location for hydrogen production that will play a crucial role in decarbonizing sectors like air and maritime transport, as well as chemical and steel industries.

Spain is particularly well-positioned to become a major player in the European hydrogen market due to its plans to produce 2.5 million tons of green hydrogen annually by 2030. A significant portion of this production will be intended for export through projects like BarMar, a pipeline connecting Barcelona to Marseille. This will position Spain and Portugal as key players in the European hydrogen market, contributing significantly to the continent’s decarbonization efforts.

The European Hydrogen Bank aims to attract private and international investments in the hydrogen sector to address funding challenges and ensure a steady supply of renewable hydrogen. Despite the potential in this sector, the International Energy Agency reports that only a small percentage of announced projects may actually become operational by the end of the decade. However, with continued support from institutions like the European Commission and organizations like