In the first community hydrogen auction, Spain and Portugal have emerged as dominant forces, securing significant funding through the European Hydrogen Bank. 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.
Three Spanish projects, including Catalina and Hysencia in Aragon, along with 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 and two from Nordic countries, Norway and Finland, have also been chosen as beneficiaries of the funds generated from CO₂ emissions trading.
One of the main recipients of funding in Spain is the Catalina project in Andorra, 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.
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,
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