Spain’s Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has allocated €524 million in funding to five large-scale renewable hydrogen projects, as part of the European Union’s Important Project of Common European Interest (IPCEI) Hy2Use initiative.

The projects—spread across Andalusia, Aragon, Asturias, the Basque Country and the Region of Murcia—are expected to add 425 megawatts of electrolysis capacity, powered by solar, wind and hydroelectric sources. Collectively, they aim to produce 55,200 tons of green hydrogen annually.

Funded under Spain’s Recovery, Transformation and Resilience Plan (PRTR), the selected projects include four large-scale hydrogen production facilities located in industrial zones and one technology-focused project for chemical applications. Total investments are expected to reach €801 million, with roughly 65% financed through the Institute for Energy Diversification and Savings (IDAE), a subsidiary of MITECO.

The initiative is designed to help accelerate decarbonization efforts in key industrial sectors while enhancing Spain’s competitiveness in renewable energy technologies. The projects will supply green hydrogen directly to nearby industries via pipelines and road transport, replacing traditional gray hydrogen in processes such as steel production, cement manufacturing, and refining.

Among the major projects:

Green H2 Los Barrios in Cádiz will provide hydrogen to local steelworks and a nearby chemical plant.

Asturias H2 Valley will support cement and steel production at facilities within three kilometers of the electrolysis site.

Bilbao Large Scale Electrolyzer will supply green hydrogen to Petronor’s refinery in Bizkaia, where the electrolyzer is co-located.

Cartagena Large Scale Electrolyzer will serve the Cartagena refinery in the Murcia Region with hydrogen primarily for self-consumption.

A fifth project, Ver-Amonia, will be based in Utrillas, Aragon. It focuses on green hydrogen’s use in the chemical sector and plans to develop a 25 MW electrolysis plant that will produce 15,000 tons of green ammonia per year, primarily for fertilizer manufacturing.

The European Commission approved these projects under IPCEI Hy2Use’s Technology Fields 1 and 2, which promote renewable hydrogen production and its integration into industrial supply chains. Officials say the funding marks a critical step toward developing a “renewable hydrogen economy” in Spain, positioning the country as a frontrunner in Europe’s clean energy transition.

Source:

Spain Allocates €524M to Boost Renewable Hydrogen Projects | Fuel Cells Works