Spain is set to achieve five gigawatts (GW) of installed electrolyzer capacity by 2030. Although this is below Spain’s target of 11 GW, it is the highest projected capacity among European Union countries.
Germany, aiming for 10 GW, follows with an expected 4.5 GW. Rystad Energy identified Spain’s favorable renewable energy conditions and supportive policies as key factors. Spain is recognized as one of the most cost-effective regions for green hydrogen production. Despite a slower global market start, projects like Puertollano’s 20 megawatts (MW) plant showcase Spain’s potential. Spain could significantly increase green hydrogen production by 2030, supported by government backing.
On July 26, the European Commission approved a EUR 1.2 billion scheme to support Spanish green hydrogen projects of at least 100 MW. This funding includes direct grants for renewable electricity production, hydrogen-derived fuels, and hydrogen storage. On July 9, Spain approved EUR 794 million in subsidies for seven projects, part of a larger EUR 5.2 billion state aid program under the Important Project of Common European Interest (IPCEI) Hy2Use. This program supports infrastructure like electrolyzers and integrating hydrogen into industrial processes.
Spain also participates in the IPCEI Hy2Move package, a EUR 1.4 billion state aid scheme for hydrogen research and development. This initiative, supported by Estonia, France, Germany, Italy, the Netherlands, and Slovakia, was approved on May 28.
Earlier, three Spanish hydrogen production projects with a total output of 595 megawatts electric (MWe) were selected as provisional winners in the European Hydrogen Bank’s inaugural award. These projects are set to receive EUR 720 million.
