Europe’s first community hydrogen auction has seen Spain and Portugal emerge as dominant forces, securing significant funding through the European Hydrogen Bank. The three Spanish projects, Catalina in Andorra, Hysencia in Aragon, and El Alamillo in Andalusia, have collectively received 263 million euros of the 720 million euros in subsidies allocated by Brussels. Additionally, two Portuguese projects and two from Nordic countries, Norway and Finland, have also been chosen as beneficiaries of the funds generated from CO₂ emissions trading.
The seven winning projects will receive financial support to bridge the gap between the cost of hydrogen production and the revenue generated from it. The Iberian Peninsula has a competitive advantage in the renewable energy sector, making it an ideal location for hydrogen production that will play a crucial role in decarbonizing sectors like air and maritime transport, as well as chemical and steel industries.
Spain is expected to receive over 230 million euros for its Catalina project alone over the next decade. This project will consist of a 500-megawatt electrolyzer powered by dedicated wind and solar plants. Other Spanish winners include Hysencia in Huesca and El Alamillo in Córdoba, developed by Benbros Energy.
All selected projects must commence hydrogen production within five years of signing the subsidy agreement. The European Commission has hinted at a second round of funding towards the end of the year to continue supporting promising projects that will drive the growth of the renewable hydrogen industry in Europe.
The European Hydrogen Bank aims to attract private and international investments in the hydrogen sector to address funding challenges and ensure a steady supply of renewable hydrogen. Despite the potential in this sector, the International Energy Agency reports that only a small percentage of announced projects may actually become operational by the end of
