Spain consolidates its position as a leader in renewable hydrogen within the framework of the second auction of the European Hydrogen Bank.
According toMiguel A. Peña, Secretary of the Spanish Hydrogen Association – AeH2, “this new auction marks a key step toward consolidating a robust hydrogen market, capable of financing viable long-term projects that address the decarbonization challenges in strategic sectors and those difficult to electrify.”
This process reflects the European sector’s commitment to the energy transition and Spain’s capacity to lead this transformation.
In the first call, Spain demonstrated its enormous potential in the field of renewable hydrogen by securing three of the seven approved projects and 46 of the 130 accepted proposals.
In an interview with Energía Estratégica España, Peña highlights that the second auction, with an increased budget of 1.2 billion euros, “reflects the European Commission’s commitment to strengthening the role of renewable hydrogen as a key piece in achieving decarbonization goals and consolidating its impact on the European economy.”
In this new phase, Spain has shown its commitment by joining the Auctions as a Service (AaaS) mechanism, allocating between 280 and 400 million euros from the Recovery and Resilience Plan.
This approach not only strengthens Spain’s leadership but also helps overcome key barriers, such as the lack of consolidated demand and the need for a clear and stable regulatory framework that transforms interest into competitive projects.
Spain’s geographical position and renewable resources are strategic advantages that allow the country to produce hydrogen efficiently and competitively, as well as become a hub for hydrogen import and export to Europe.
“On the one hand, we have exceptional renewable resources, and on the other, our strategic location places us in a privileged position to meet both internal and external demands,” says the Secretary of AeH2.
In terms of competitiveness, the sector faces challenges in cost reduction. Currently, the price of renewable hydrogen in the Iberian Peninsula stands at €5.85/kg, far from the €2/kg expected for a fully competitive market.
Peña clarifies that “the real challenge lies in continuing to drive the deployment of projects, leveraging economies of scale, and fostering technological progress.” These factors will be key to closing the gap between production costs and the desired selling price.
Finally, Peña emphasizes that the focus should be on sectors that are difficult to electrify, such as heavy industry and maritime transport, which are major beneficiaries of renewable hydrogen.
To ensure the viability of the projects, it is essential to consolidate a strong local demand that closes the loop of production and consumption.
This effort, alongside technological and financial advancements, positions Spain as a key player in the European energy transition.
