Uncertainty surrounds the IDAE aid programs that aimed to promote renewable hydrogen projects in Spain.

According to Eugenio Trillo León, CTO of Lean Hydrogen, these funds, which belong to the PERTE ERHA and are financed with European resources, are at risk of cancellation due to the lack of committed buyers for the hydrogen produced.

“We are talking about grants of up to 15 million euros per project, equivalent to designs of around 30 million euros in the largest cases,” he explains in an interview with Energía Estratégica España.

However, the problem does not only lie in the funds, but in the lack of trust from financial institutions in the business plans presented.

“Banks don’t believe the letters of interest from potential offtakers, or they are simply not enough to make the projects viable,” the executive details.

Despite the efforts to finance CAPEX, the projects have not managed to consolidate; raising questions about whether OPEX subsidies will perform better.

In this regard, Trillo points out that the first hydrogen auction in Europe, which required guarantees from beneficiaries, has shown positive signs and describes: “Six of the seven selected projects have committed guarantees, showing a higher level of seriousness.”

Thus, the expert emphasizes the need to rethink the basis of the calls proposed in Spain, as he believes that IDAE must design a system that attracts solid and reliable projects, with a hydrogen price that convinces buyers in the long term.

“Without a competitive price, there will be no buyers willing to commit, and projects will continue to fail,” he adds.

Proposals for a sustainable future

Among Trillo’s proposals, the need to involve regional stakeholders more actively stands out.

“The level of participation in the calls is a vanity indicator. Instead, IDAE should organize meetings with regional clusters and promote active dialogue in the autonomous communities,” he suggests.

Additionally, he proposes redesigning the Pioneros and Grandes Demostradores programs to align them with the commitments of the AFIR regulation, which requires the installation of hydrogen refueling stations (HRS) on the TEN-T network.

“Why not focus the subsidies on purchasing hydrogen trucks and buses, as well as HRS and electrolyzers that enable meeting these commitments?” Trillo proposes.

Finally, he underscores the importance of strengthening the technological industry in Spain, promoting research and development to build a solid value chain in renewable hydrogen.

He concludes by stating that R&D must be a priority in order to create competitive technological companies in this sector.

A structural problem

The situation of renewable hydrogen in Spain reflects structural challenges that affect other industrial sectors.

Cases like the recent suspension of ArcelorMittal’s green steel project in Asturias highlight the need for a more robust regulatory framework. According to experts like Marcos Rupérez, “the lack of offtakers and global competition limit the viability of these initiatives.”

The update of the Hydrogen Roadmap, pending since 2023, presents an opportunity to establish clear medium- and long-term objectives.

However, time is running out. According to Trillo, IDAE must act quickly to avoid returning millions of euros in unexecuted aid and states, “Let’s do something concrete with the abstract ideas of energy independence and technological sovereignty that Europe brought us.”