en.Wedoany.com Reported - Spain's Ministry for the Ecological Transition and the Demographic Challenge has allocated €439.4 million through the Auction-as-a-Service mechanism to fund three renewable hydrogen production projects located in Andalusia and Castilla-La Mancha. The beneficiary projects have a total electrolysis capacity of 250 MW. They were selected in the third general auction of the European Hydrogen Bank but could not receive funding from Brussels because they exceeded the available EU budget.
This subsidy allocation exhausts the €440 million budget provided by Spain's Ministry for the Ecological Transition and the Demographic Challenge, through the Institute for Energy Diversification and Saving (IDAE), for the second national Auction-as-a-Service call. Through this mechanism, directly linked to the European Hydrogen Bank auctions, Spain used its own Recovery, Transformation and Resilience Plan funds to rescue these three projects, which were pre-selected last week by the European Commission based on the ranking order established by the European Climate, Infrastructure and Environment Executive Agency. Two of them will be located in the province of Huelva, and the third in the province of Albacete.
With the publication of the governing body's agreement on the list of national projects selected by the European Climate, Infrastructure and Environment Executive Agency, the IDAE, acting as the governing body, has opened a 21-calendar-day period for these three projects—formally transferred by the European Hydrogen Bank to Spain's Auction-as-a-Service mechanism—as well as other Spanish projects on the "Innovation Fund IF25 Auction" reserve list, to submit the required documentation, including participation guarantees and project execution guarantees.
The incentive structure of the Auction-as-a-Service consists of a subsidy for hydrogen produced and certified as 100% renewable, for a maximum period of 10 years from the start of operations, applicable to projects that comply with the principle of doing no significant harm to the environment at all stages.
In the first Spanish Auction-as-a-Service, three other Spanish projects transferred from the European Hydrogen Bank's general mechanism were beneficiaries: SmartEnergy's "Orange-Bat" in Onda, Castellón province; "ELYSENeM-Numancia" in Garray, Soria province; and "ACCIONA PLUG Valle H2V NAVARRA" in the town of Sangüesa, Navarre, receiving a total of €220.02 million in incentives from the Recovery Plan NextGenEU funds.
This new national auction is part of the Spanish government's commitment to renewable hydrogen as a key element for eliminating CO₂ emissions in industry, heavy transport, and other hard-to-decarbonize sectors, and aligns with the development of the Strategic Project for Renewable Energy, Renewable Hydrogen, and Storage.
To date, the IDAE has granted a total of €2.814 billion in aid for green hydrogen projects through programs such as H2 Pioneros, H2 Cadena de Valor, H2 Valles, several rounds of Important Projects of Common European Interest launched from Brussels, and the first Auction-as-a-Service. In total, more than €3 billion from the Recovery, Transformation and Resilience Plan funds and its addendum are allocated to the green hydrogen chapter, which is key to the decarbonization process and the creation of a complete associated technological and industrial ecosystem, as envisioned in the Renewable Hydrogen Roadmap and the National Integrated Energy and Climate Plan.
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