Spain has selected two renewable hydrogen projects for a combined €126.4 million under its first national “auction-as-a-service” (AaaS) scheme, after both initiatives had been preselected by the European Commission in the second general auction of the European Hydrogen Bank but failed to obtain EU funding due to exhausted budgets. The Government is strengthening its commitment to renewable green hydrogen as a substitute for fossil energy and as a tool to cut CO₂ emissions in industry, heavy transport and other hard-to-abate sectors.
The Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has allocated the €126.4 million to two projects located in the Valencia Region and in Castile and León. According to official resolutions published by the Administration, these initiatives together represent 160 MW of electrolysis capacity and were shortlisted by the European Climate, Infrastructure and Environment Executive Agency (CINEA).
This national AaaS call enabled Spain to finance, with domestic funds, projects that had been ranked by the European Commission but did not secure EU support due to limited budget availability. The grants are managed by the Institute for Energy Diversification and Saving (IDAE), an entity under MITECO, and funded through Spain’s Recovery, Transformation and Resilience Plan (PRTR).
The incentives take the form of subsidies linked to the volume of hydrogen produced and certified as fully renewable—classified as RFNBO (Renewable Fuels of Non-Biological Origin) under the EU Renewable Energy Directive. They will be awarded for a maximum of ten years from the start of operation to projects that comply with the “do no significant harm” principle throughout their lifecycle. This is the first time in Spain that support is granted not for capital expenditure but directly for renewable hydrogen production.
Selected projects
The project receiving the largest allocation is Orange.Bat, awarded €82.5 million. It involves the construction of an electrolytic renewable hydrogen plant in Onda (Castellón), featuring a 100 MW alkaline electrolyser and an estimated annual output of 11,960 tonnes. Electricity will be supplied by wind and solar PV assets, with the hydrogen destined for 11 ceramic industries in the Valencia Region.
The project eM Numancia, awarded €43.9 million, will build an electrolytic renewable hydrogen facility in Garray (Soria) to produce green methanol for five companies in the chemical, wood, logistics and maritime sectors. It includes a 60 MW alkaline electrolyser powered by wind and solar installations, with an expected annual production of 6,363 tonnes of hydrogen and 33,334 tonnes of green methanol.
A national commitment to renewable hydrogen
The national auction forms part of Spain’s broader strategy to position renewable hydrogen as a key tool for decarbonising energy-intensive industries, heavy-duty transport and other sectors where electrification is limited. It aligns with the strategic framework of the PERTE for Renewable Energies, Renewable Hydrogen and Energy Storage (ERHA).
To date, IDAE has granted €2.721 billion to green hydrogen projects through programmes such as H2 Pioneros, H2 Cadena de Valor, H2 Valles and successive waves of IPCEI (Important Projects of Common European Interest). In total, nearly €3 billion from the PRTR and its addendum have been allocated to the green hydrogen chapter—considered essential for Spain’s decarbonisation pathway and for building a complete technological and industrial ecosystem, in line with the Renewable Hydrogen Roadmap and the National Integrated Energy and Climate Plan (PNIEC).