Head of Government Pedro Sánchez announced that the total subsidy will be approved in the coming weeks, with 900 million euros destined for renewable hydrogen projects led by Repsol, Iberdrola, EDP, and Endesa. These initiatives were selected by Brussels under the framework of the second Major European Project of Common Interest IPCEI to strengthen the hydrogen value chain across regions including Andalusia, Aragon, Castilla La Mancha, Murcia, and the Basque Country. These investments aim to accelerate the deployment of clean hydrogen technologies and integrate them into industrial and energy systems across Spain.
European Commission guidelines for state aid permit the IPCEI declarations to exceed ordinary regulatory limits when pursuing critical infrastructure. In September 2022, Brussels identified 35 projects focused on hydrogen infrastructure and applications across 13 countries, collectively receiving about 5.2 billion euros. The Spanish subset consists of seven projects led by four companies, aligning with the broader EU strategy to bolster energy resilience and decarbonization efforts. Among these, a 100 MW electrolyzer is planned to support the Basque subsidiary of Repsol, Petronor, in Vizcaya in 2026, following the completion of its first hydrogen project (2.5 MW) at the end of the previous year. A second electrolyzer is planned near Cartagena, sharing the same capacity, with these installations positioned adjacent to refinery facilities that already host a range of synthetic and renewable fuel developments. These actions are part of a broader push to transform refineries into hubs for low-emission energy production and storage, reducing dependence on fossil fuels.
Other selected hydrogen plants include EDP projects at Aboño in Asturias and Los Barrios in Cádiz, near existing thermal power plants. The company plans to repurpose coal-powered assets by 2025 and establish what it terms the Asturian Hydrogen Valley to supply green energy to the industrial sector in Campo and to the broader regional economy of Los Barrios. There is potential for exports via sea routes to nearby markets such as Gibraltar. The plans also feature EDP IAM Caecius inside Teruel in southern Aragon, proposing a 25 MW electrolyzer to advance regional decarbonization goals.
For Iberdrola, the Brussels package favors the Puertollano project in Ciudad Real, intended to shift from natural gas to hydrogen in the production of ammonia for fertilizer manufacture. Endesa, through its parent Enel Green Power renewable energy arm, plans a 7.2 MW electrolyzer in Alfajarín, Zaragoza, to supply Industrias Químicas del Ebro IQE. These projects reflect a coordinated push to create an authentic industrial ecosystem that links electrolyzer manufacturing, green hydrogen production, decarbonization applications across manufacturing and transport, and potential cross-border exports to other European markets. The overarching objective is to strengthen energy security, reduce imports, and convert renewable energy into a powerful engine for economic growth and job creation, as explained by government officials and industry leaders. The vision emphasizes building a complete value chain that can attract investment, drive industrial modernization, and position Spain as a hub for hydrogen technologies in Europe, according to the government and associated agencies.
The government previously allocated around 74 million euros a year earlier within the first IPCEI of this energy vector, supporting four Spanish hydrogen projects. Beneficiary companies included H2B2, Nordex, ŞENER, and IVECO, with initiatives spanning multiple regions such as Andalusia, the Basque Country, Navarra, Asturias, Castilla y León, Catalonia, and the Community of Madrid. These earlier efforts laid the groundwork for broader EU-supported hydrogen infrastructure and supply chains, reinforcing Spain’s commitment to accelerating decarbonization and building resilient energy systems. The continued investment signals a sustained effort to develop a comprehensive hydrogen economy that can contribute to climate objectives while fostering regional growth and technological leadership, as noted by European and national authorities.