Brussels approves a Spanish plan of 400 million to assist the manufacturing of renewable hydrogen | Economy | EUROtoday

The European Commission has given its approval on Tuesday to the state assist plan introduced by Spain for 400 million euros to assist the manufacturing of as much as 221,000 tons of renewable hydrogen via the “auctions as a service” regime of the European Bank of Hydrogen, an initiative that seeks to facilitate the interior manufacturing of the EU and the imports of renewable hydrogen.

As indicated by the European Executive in an announcement, it has been thought of that the Spanish plan is “necessary and adequate” to facilitate the manufacturing of renewable hydrogen, which, in flip, will contribute to the “decarbonization of the industry, transport or energy sectors”. And he provides: “The regime will contribute to the objectives of the Pact for a clean industry to accelerate the decarbonization of the EU industry, while reinforcing its competitiveness,” says Brussels. The plan can be in keeping with the European Repowereu program to cut back the dependence of Russian fossil fuels and speed up the ecological transition, in addition to with the EU technique for hydrogen, in response to the European Commission via an announcement.

Brussels signifies that the state assist regime authorised on Wednesday will permit the development of as much as 345 megawatts of put in electrolyte capability and the manufacturing of as much as 221,000 tons of renewable hydrogen in Spain in Spain. Something that, calculates the fee, “will contribute to avoid emissions for the equivalent of up to one million tons of co₂.” Spain is rising as one of many nice producing powers of renewable power.

The manufacturing of renewable power in Spain grew final yr to 148,999 GWh, which represents 10% extra in comparison with the earlier yr and represented 56% of all electrical energy produced within the nation. In addition, it has a number of enterprise tasks corresponding to Moeve (Antigua Cepsa), Repsol or Enagás. For these, the Minister of Ecological Transition and Energy, Sara Aaegesen, lately authorised the award of 1,214 million euros of European funds to seven tasks to create giant valleys or clusters of renewable hydrogen situated in Aragon, Andalusia, Castilla y León, Catalonia and Galicia.

The Spanish plan may even contribute, the fee is assured, that Spain achieves its nationwide goal to put in 12 gigawatts of electrolyte capability “from here to 2030” and the goals associated to the quota of renewable fuels of non -biological origin consumed in transport and within the business.

The assist will likely be granted via a aggressive bidding process that can finish on this first quarter of 2025, the assertion mentioned. The course of will likely be supervised by the European Climate, Infrastructure and Environment Executive Agency (Cinea), which will likely be answerable for “receiving, evaluating and classify” the presents for tasks in all Member States. The assist could have the type of direct subsidies per kilogram of renewable hydrogen produced, and will likely be supplied to corporations which have deliberate to construct new electrolyzers in Spain, for a most interval of seven years.

On the opposite hand, the beneficiary corporations should reveal the success of the EU standards for the manufacturing of renewable fuels of non -biological origin, amongst others that contribute to the deployment or financing of the extra renewable electrical energy mandatory to provide the hydrogen welcomed by assist by the regime, the fee requires.

According to the Brussels evaluation, which acquired the Spanish proposal on the finish of final yr, the plan introduced has an “incentive effect”, since it’s thought of that the beneficiaries “would not make the relevant investments of not mediating public aid.” In addition, the Commission considers that Spain has established “sufficient safeguards” to ensure the “limited effect on competition and trade within the EU” of its plan. Finally, the Executive provides to justify his approval, these grants could have “positive effects, especially on the environment” that “will compensate for any possible negative effect in terms of falsification of competition.”