The European Hydrogen Bank has awarded significant funding to six projects, including three in Spain and two in Portugal, as part of the first community hydrogen auction. These projects have received a total of 720 million euros in subsidies allocated by Brussels to bridge the gap between the cost of hydrogen production and revenue generated from it.
Spain has emerged as a dominant force in this sector, with three winning projects receiving a combined total of 263 million euros. The Catalina project in Andorra is expected to receive over 230 million euros over the next decade, while Hysencia in Huesca and El Alamillo in Córdoba will also receive substantial funding. All selected projects must commence hydrogen production within five years of signing the subsidy agreement.
Portugal is also well-positioned to benefit from this funding, with two projects receiving subsidies. Additionally, Norway and Finland have also been chosen as beneficiaries of funds generated from CO₂ emissions trading.
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.
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 this sector to address funding challenges and ensure a steady supply of renewable hydrogen. Despite its potential, the International Energy Agency reports that only a small percentage of announced projects may become operational by the end of the decade.