Commission approves €440 million Spanish state aid scheme to support renewable hydrogen production

The European Commission has approved, under EU state aid rules, a Spanish state aid scheme worth €440 million to support the production of renewable hydrogen. This will be done through the European Hydrogen Bank’s ‘auctions as a service’ tool for the auction that closed in February 2026. The scheme will contribute to the objectives of the Clean Industry Pact to accelerate the decarbonisation of EU industry while strengthening its competitiveness.

Spain estimates that the approved scheme will support the construction of up to 382 MW of electrolysis capacity. It should also incentivise the production of up to 243,800 tonnes of renewable hydrogen, resulting in the avoidance of up to 1,790,000 tonnes of CO2. The scheme will help Spain achieve its national target of installing 12 GW of electrolyser capacity by 2030, as well as the targets for the share of non-biological renewable fuels consumed in transport and industry set out in the Renewable Energy Directive. Under the scheme, aid will take the form of direct grants per kilogram of renewable hydrogen produced. Spain may grant the aid over the next twelve months. Once the aid has been granted, beneficiaries are eligible for payments over a period of ten years.

The Commission assessed the scheme under EU state aid rules, Article 107(3)(c) of the Treaty on the Functioning of the European Union, and the 2022 State Aid Guidelines on climate, environmental protection and energy. The Commission considered that the scheme is necessary and appropriate to facilitate the production of renewable hydrogen. Furthermore, the Commission found that the scheme has an incentive effect and a limited impact on competition and trade within the EU. Finally, the aid will have positive effects, particularly on the environment, which will outweigh any possible negative effects in terms of distortion of competition. For these reasons, the Commission has approved the Spanish aid scheme in accordance with the relevant EU rules.