Spain Accelerates Hydrogen Market Leadership with Major Investments in Green Energy Projects

Spain is focusing on dominating the regional hydrogen market, aiming for 11 GW of electrolyzer capacity by 2030, the highest target in the EU. While the country currently projects 5 GW by that date, additional support from subsidies is needed to meet the target.

Spain’s favorable renewable energy conditions make it a cost-effective region for green hydrogen production, with government funding, including a €2.3 billion subsidy program, bolstering efforts. Spain’s successful bids in the European Hydrogen Bank (EHB) pilot auction highlight its potential to become a net exporter, especially to nations like Germany.

Hydrogen Market and Spain

Three Spanish hydrogen projects were awarded funding in the European Hydrogen Bank (EHB) auction:

1. DH2 Energy’s Hysencia: With 35 MW electrolyzer capacity, it bid €0.48 per kilogram for 17,000 tonnes of hydrogen over 10 years, requesting €8.1 million in funding. Located in Argon, it includes 49 MW of solar capacity and will provide hydrogen to the steel and fertilizer industries.

2. El Alamillo H2 by Benbros Energy: Featuring 60 MW capacity, it bid €0.38 per kilogram for 65,000 tonnes of hydrogen over 10 years, requesting €24.6 million. Its estimated cost is €5.80 per kilogram, though offtake agreements are still in progress.

3. Renato PtX’s Project Catalina: The largest, with 500 MW electrolyzer capacity, bid €0.48 per kilogram for 480,000 tonnes of hydrogen across 10 years. It plans 1.1 GW of solar and wind power and a green ammonia plant, achieving an estimated cost of €4.61 per kilogram.

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