EU Endorses Major Green Hydrogen Initiatives in Spain and Netherlands with $2.4 Billion

Recently, the European Commission sanctioned two initiatives aimed at enhancing the production of green hydrogen. These initiatives include a $1.3 billion program for Spain and an approximate $1.1 billion program for the Netherlands.

The Dutch initiative, sanctioned under EU State aid regulations, is set to back the establishment of at least 200MW of electrolysis capacity. This move aligns with the EU’s larger objective of installing a minimum of 6GW of renewable hydrogen electrolyzers by 2024 and 40GW by 2030. The Netherlands anticipates this scheme will lead to an annual reduction of approximately 55 kilotonnes of CO2 emissions until 2030.

Margrethe Vestager, the Executive Vice President overseeing competition policy, remarked that the development of renewable hydrogen production is crucial to achieving the EU’s climate neutrality targets. She highlighted that the €998 million Dutch initiative will facilitate the expansion of renewable hydrogen production in the Netherlands by supporting electrolysis projects of varying sizes while ensuring minimal competition distortion. This financial aid, provided as a grant, will be distributed through a competitive bidding process open to projects with a minimum capacity of 0.5MW, concluding in 2024.

Additionally, the European Commission approved a $1.3 billion scheme in Spain to bolster investments in renewable hydrogen production and the development of hydrogen valleys and clusters. Approved under the State aid Temporary Crisis and Transition Framework, this scheme aims to support renewable hydrogen production with an installed capacity of at least 100MW. Investments may include the production of renewable hydrogen-derived fuels, storage of renewable hydrogen, and production of renewable electricity. Applicants must secure agreements with off-takers to cover at least 60% of the expected renewable hydrogen or hydrogen-derived fuel production to qualify.

Vestager also noted that the $1.3 billion Spanish scheme will expedite the deployment of renewable hydrogen capacities in alignment with the EU Hydrogen Strategy and the European Green Deal. This initiative will aid Spain in reducing its reliance on imported fossil fuels while minimizing potential competition distortions.

Have you read?
Countries: Powerful Passports.
Countries: Richest.
Countries: Poorest.
Countries: Happiest.
Countries: Life Expectancy.