Spain takes a strategic step in consolidating renewable hydrogen. On 4 April, the Institute for the Diversification and Saving of Energy (IDAE) published the Final Resolution Proposal for the Incentives Programme for Renewable Hydrogen Production and Consumption Projects – Clusters or Valleys, under the Recovery, Transformation and Resilience Plan, funded by the European Union – NextGenerationEU.

A total of €1,223,093,691 in non-repayable grants is proposed for seven projects selected through a competitive tender process.

These initiatives will enable the installation of over 2,292.8 MW of electrolysis capacity (MWe) across six Spanish regions: Castile and León, Aragon, Galicia, Andalusia, Catalonia, and other high-potential industrial zones.

Repsol, Capital Energy, CIP and RIC Energy among the beneficiaries

Among the awardees is the CATALINA project, led by Copenhagen Infrastructure Partners (CIP), which will receive €245 million to deploy 500 MW of electrolysis in Andorra (Aragon).

Also notable is the Andalusian Green Hydrogen Valley, developed by MOEVE, which will obtain €303.75 million for 405 MW of capacity in Palos de la Frontera, Andalusia.

The P2X HOLDCO consortium, in collaboration with Repsol, will operate the Hydrogen Valley of A Coruña, comprising 251.8 MW of capacity, with an assigned subsidy of €170.2 million. The development will be located in Galicia, a strategic region for energy exports.

The Tarragona Hydrogen Network (T-HYNET), also led by Repsol, has been selected as well, with 140.8 MW and €104.2 million in funding, located in La Pobla de Mafumet (Catalonia).

Meanwhile, Capital Energy and ALKEYMIA GROUP will receive a total of €138.6 million for a transregional 360 MW project spanning the municipalities of Caspe, Fabara and Ascó, in Aragon and Catalonia.

The Sustainable Fuel Production Plant project in Cubillos del Sil, developed by RIC Energy, is another major recipient, with €81.4 million and 220 MW of electrolysers to be deployed in Castile and León.

Finally, the León Green Hydrogen Valley, managed by La Robla Green, has been earmarked for €180 million in financial support to develop 415.2 MW across La Robla and Villadangos del Páramo (Castile and León).

Reserve list and rejected projects

The resolution also includes a reserve list of projects that, although meeting the minimum score threshold, have not been granted funding due to budget limitations. These could be supported in case of withdrawals or future budget extensions.

The four initiatives on the reserve list are promoted by Repsol, EDP España, and BP ENERGÍA ESPAÑA in partnership with Iberdrola and ITE.

In addition, five projects were rejected for failing to meet technical or environmental criteria — particularly the lack of firm offtake agreements for at least 60% of the hydrogen produced, electrolyser sites below the minimum 50 MW, or non-compliance with the DNSH principle (Do No Significant Harm).

The following companies were listed among the rejected proposals: FYM, Petronor, EDF, EDP España, Rolwind (Hyren Almonte), Solarig Global Services, Forestal del Atlántico and Reganosa.

Evaluation criteria and budget allocation

The evaluation process was based primarily on economic criteria (up to 70 points), technical capacity (10 points), and environmental and socio-economic impact (20 points).

Priority was given to projects that optimise the public aid per MW installed, demonstrate strong technical maturity, and generate local impact, job creation, gender equality and sustainability.

Each project was required to have a minimum total capacity of 100 MW, with individual sites of at least 50 MW and no more than 100 km apart to be considered as a single hydrogen valley. In addition, firm offtake agreements for at least 60% of the hydrogen or its derivatives were mandatory.

This first call was endowed with a total budget of €1.2 billion, of which a substantial portion has been committed in this phase. No single company or project may receive more than 33% of the available funds, ensuring fair distribution.

Next steps and deadlines

Awarded entities must formally accept the grant within ten working days of publication. Failure to do so will be considered an automatic withdrawal. The final resolution will then be submitted to the IDAE Board of Directors for approval.

Subsidised actions must be completed within 36 months from the date of the grant resolution. Eligible investments must have started after 9 March 2023, in accordance with the incentive effect criteria.