Spanish Energy Giants Secure €800mn in Government Funding for Renewable Hydrogen Projects

The Spanish government has allocated €794 million to seven large-scale renewable hydrogen projects, marking a significant step towards decarbonising hard-to-electrify sectors like heavy industry and transportation. Leading energy companies Iberdrola, Endesa, Repsol, and EDP will receive the funds, which are sourced from the European post-pandemic recovery fund.

These projects, totalling over 652 megawatts (MW) of renewable electricity generation, are expected to attract investments exceeding €6 billion throughout their lifespan. Repsol will be the largest recipient, securing €315 million for its electrolyser at the Petronor refinery and its Cartagena fuel production plant. Iberdrola will receive €242 million for producing renewable hydrogen for ammonia and fertilisers, while EDP will get €209 million for three projects near coal-fired power plants in Teruel, Cádiz, and Asturias. Endesa will receive €28 million for its project in Magallón.

The projects aim to replace fossil fuels with renewable hydrogen, which is produced using renewable electricity, in sectors like fuel production, fertilisers, and various industries. The Spanish authorities estimate that these initiatives will replace 17,000 tons of "dirty" hydrogen annually with clean hydrogen.

Five of the projects involve high-capacity electrolysers located in industrial areas like ports, contributing to the development of integrated clusters or valleys. The remaining two projects in Aragon focus on generating hydrogen for fertilizer and chemical production.

Spain is among 14 countries accessing this second tranche of European funds for decarbonisation projects. The collective efforts aim to create a thriving European market for green hydrogen.