The Commission approves a Spanish state aid scheme worth 440 million euros to support renewable hydrogen production

The European Commission has approved a €440 million Spanish state aid program aimed at supporting renewable hydrogen production, in line with EU state aid regulations. The funding will be delivered through the European Hydrogen Bank’s “auctions-as-a-service” mechanism, linked to the auction that concluded in February 2026. The initiative supports the goals of the Clean Industry Pact, which seeks to accelerate industrial decarbonization across the EU while maintaining global competitiveness.

Spain expects the scheme to enable the development of up to 382 MW of electrolysis capacity and stimulate the production of around 243,800 tonnes of renewable hydrogen. This could help avoid approximately 1.79 million tonnes of CO₂ emissions. The program will also contribute to Spain’s national objective of installing 12 GW of electrolyzer capacity by 2030, while helping meet the Renewable Energy Directive targets for the use of renewable fuels of non-biological origin in transport and industry. Financial support will be provided as direct subsidies per kilogram of renewable hydrogen produced, which Spain may allocate within the next 12 months. Beneficiaries will have the option to receive payments over a 10-year period.

In its review, the Commission evaluated the measure under EU state aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union, along with the 2022 Guidelines on State aid for climate, environmental protection, and energy. It concluded that the scheme is both necessary and suitable for boosting renewable hydrogen production. The Commission also determined that the program provides clear incentives while having only a limited effect on competition and trade within the EU. Overall, the expected environmental benefits outweigh any potential distortions of competition, leading the Commission to approve the measure under EU regulations.