In the first community hydrogen auction, Spain and Portugal have emerged as dominant forces, securing significant funding through the European Hydrogen Bank. These projects are expected to play a crucial role in decarbonizing sectors like air and maritime transport, as well as chemical and steel industries.
Three Spanish projects, including 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. Two projects from neighboring Portugal have also been chosen as beneficiaries of the funds generated from CO₂ emissions trading. Additionally, two projects from Nordic countries, Norway and Finland, have also been selected for funding.
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 contribute significantly to Europe’s decarbonization efforts.
One of the main recipients of funding in Spain is the Catalina project in Andorra, which is expected to receive over 230 million euros over the next decade. The 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