en.Wedoany.com Reported - Spain's Ministry for Ecological Transition has confirmed an allocation of €50,216,284 to the Quixotgen renewable hydrogen plant project in Villarrobledo, Albacete province. The funding comes from the EU's Next Generation funds, managed by IDAE (Institute for Energy Diversification and Saving of Spain) through the second national auction call, aimed at supporting the local phase-out of fossil fuels. The project, to be built by Doña Urraca Energy S.L.U., was initially approved by the EU but, due to a budget shortfall at the EU level, the Spanish government has stepped in to provide support using national public resources.
The facility will be equipped with electrolysis equipment totaling 30 megawatts of power, with technical estimates projecting an annual production of 3,487 metric tons of clean fuel. Over the first full ten-year continuous operational period, the subsidized cumulative output is expected to reach 34,872 tons. Public regulatory authorities will require periodic submissions of evidence to verify that actual production meets established environmental targets.
State incentives will be provided in the form of a fixed payment of €1.44 per kilogram of renewable hydrogen. Doña Urraca Energy must submit semi-annual performance audit reports to IDAE technicians to confirm eligibility for these payments. The official timeline requires obtaining an integrated environmental permit within a maximum of 24 months, followed by a final investment decision by the promoter within 30 months, with a 60-month deadline for commencing commercial operations and production. Failure to meet any intermediate targets will result in the immediate withdrawal of the state-granted economic benefits.
The Quixotgen proposal was initially pre-selected by the European Commission and the technical agency Cinea. The second call under this funding scheme allocated a total budget of €439.4 million nationwide, distributed to only three large-scale energy projects selected for their feasibility, with two facilities to be built in Huelva and the third in Albacete province. The total installed capacity of the three selected projects reaches 250 megawatts of electrolysis capacity. Additionally, Madrid plans to build a large hydrogen refueling station by 2028, further advancing Spain's hydrogen infrastructure network.
