The application period will be open from April 8 to June 7. There are expected investment minimums that are being studied by the companies.
The Official State Gazette (BOE) published the extract of four calls for aid for incentive programs for the innovative value chain and knowledge of renewable hydrogen.
Endowed with 250 million euros, they will be allocated to large electrolyzers (100 million), available here; demonstration and validation of vehicles (80 million), available here; industrial and experimental research (40 million), available here; promotion of capabilities and technological advances in testing and manufacturing lines (30 million), available here.
It is estimated that their materialization will generate more than 14,000 jobs and contribute more than 960 million euros to the GDP.
The calls are part of one of the two lines for the promotion of renewable hydrogen, approved in December 2021 by the Ministry for Ecological Transition and the Demographic Challenge (MITECO) within the Strategic Project for the Recovery and Economic Transformation of Renewable Energies, Renewable Hydrogen and Storage (PERTE ERHA).
The characteristics of the calls are available on the website of the Institute for Energy Diversification and Saving (IDAE) and the deadline for submitting applications will remain open from April 8 until June 7.
Among the award criteria, the participation of SMEs, the positive impact on Just Transition areas, the reduction of emissions and the creation of employment will be valued.
The IDAE will be in charge of managing the grants, which will be awarded on a competitive basis, and are aimed at improving the production and manufacturing capabilities of components, equipment and systems; the development of prototypes in the field of mobility and large demonstrators of electrolyzers, and the deployment of key enabling technologies within the value chain.
The projects must comply with the principle of “no significant harm” to the environment and the aid will take the form of a subsidy to be received by the beneficiary, on a definitive basis, once the execution of the project has been verified and the eligible costs incurred have been accredited.
Programs and evaluation criteria
The grants are linked to four incentive programs:
- capacities, technological advances in test and manufacturing lines:
Sub-program 1 a) manufacturing facilities for equipment related to the renewable hydrogen value chain. In particular, manufacturing facilities and equipment for other equipment, components and systems, with a budget of 20 million.
Subprogram 1 b) improvement of capacities linked to R&D&I: focused on testing facilities for components, systems and auxiliary equipment related to the production, distribution and use of renewable hydrogen, with a budget of 10 million.
- Design, demonstration and validation of new hydrogen-powered vehicles, with a budget of 80 million euros.
Large-scale electrolysis demonstrators, innovative projects for renewable hydrogen production:
Subprogram 3 a) for the development and fabrication of a large electrolyzer, a first prototype including elements of progress with respect to the current state of the art, with a budget of 40 million.
Subprogram 3 b) for the real and effective integration of a large electrolyzer in an industrial operational context, with a budget of 60 million.
- Basic-fundamental research challenges, innovative pilot projects and training in key enabling technologies within the value chain, with a budget of 40 million.
Depending on demand, within the same program, the possibility of transferring funds between sub-programs is foreseen, so as to have the flexibility to adapt to the real demand of the beneficiaries.
Likewise, before the deadline for submitting applications, it is contemplated that the extension of the budget of each call may be assessed, by agreement of the Board of Directors of the IDAE, provided that the annual expenditure limit per call established in Regulation (EU) No. 651/2014, of the Commission of June 17 is not exceeded.
Minimum investment from €500,000 to €1 million
The size of the projects will allow taking advantage of economies of scale and synergies that optimize in their scope the decarbonization processes with renewable hydrogen. Thus, a minimum investment of 1,000,000 euros per project is established for programs 1, 2 and 3, and 500,000 euros per project for program 4.
The awarding of grants will be made according to the following criteria:
Technical characteristics: the relevance of the project’s objectives, the level of maturity of the technology and the degree of innovation provided will be included. It will be valued that it contributes to the achievement of the corresponding objectives of the PRTR within the framework of component 9 ‘Renewable hydrogen roadmap and its sectorial integration’.
Economic viability: the provision of increased private funding in the project for each euro of public funding will be positively evaluated.
Project feasibility: the concreteness of the technical objectives set, the methodology and work plan, as well as the strength of the work team (capacity and experience), the collaboration between the business sector and the scientific community and the participation of SMEs will be positively valued. As well as the degree of progress in obtaining the necessary administrative procedures and permits.
Technological scalability and market potential: criteria of replicability/scalability, market potential of the new technologies or creation and dissemination of the knowledge acquired in the project will be assessed.
Externalities: the positive impact on areas of Just Transition, emissions reduction and job creation, among others, will be assessed.
It should be noted that these calls will have important energy and economic impacts. In reference to subprogram 3 b), which supports the real and effective integration of a large electrolyzer in an industrial operational context, it is estimated that four projects with an average electrolysis power of 25 MW can be supported, thus reaching a total of 100 MW of renewable hydrogen electrolysis power.
As regards the economic and social impact, it is estimated that the four calls for proposals will create more than 14,000 new jobs, both direct and indirect, and will contribute more than 960 million euros to Spain’s GDP.
Renewable Hydrogen: a Country Project
These calls are framed within Component 9 ‘Renewable hydrogen roadmap and its sectoral integration’ of the PRTR, and, in particular, within its Investment 1: ‘Renewable hydrogen: a country project’, which aims to position Spain as a technological reference in the production and use of renewable hydrogen.
In addition, they are part of PERTE ERHA, a complete program of instruments and measures to develop technology, knowledge, industrial capacities and new business models that reinforce Spain’s leadership position in the field of clean energies.
It will mobilize an investment of more than 16,300 million, between contributions from the Recovery Plan and private funds. In general, economic support will be granted through competitive calls to select the best projects.
Likewise, through the deployment of this aid mechanism, progress will be made towards achieving the objectives of the Hydrogen Roadmap, a strategic document to promote renewable hydrogen.
Among other objectives, the aim is to reach an electrolysis power of 300 MW to 600 MW in 2024 and 4 GW in 2030, 10% of the EU target, which shows the ambition of our country to be a key player in the European context.
