Spain announced a huge new financial pledge to speed up renewable hydrogen deployment throughout Europe by committing €415 million to the European Commission‘s Auctions-as-a-Service (AaaS) mechanism under the Innovation Fund, which is managed by the European Hydrogen Bank. The money will be used to support new local projects for green-hydrogen production and utilization.
Announcement by Energy Minister
The Vice-President of Spain and Minister for the Ecological Transition and the Demographic Challenge, Sara Aagesen, made the announcement at the Q-Cero Alliance meeting closing session. Besides the hydrogen fund, Spain also pledged an additional €50 million to the EU’s first industrial heat auction, an initiative aimed at speeding up the energy transition of the high-temperature industrial sector.
Total Hydrogen Funding Reaches €3.1 Billion
“This new allotment has brought the total to €3.155 billion with which we are going to materialize the hydrogen,” Aagesen remarked. “Hydrogen was a laboratory concept a decade ago. Today we are witnessing actual projects all over the country that are making our economy less carbon-intensive.”
Second Major AaaS Contribution
Spain’s recent contribution is Spain’s second significant investment under the AaaS mechanism and thus a follow-up to the €376.9 million commitment in 2024. The move will enable Spain to fully allocate the funds allotted to the Institute for Energy Diversification and Saving (IDAE) under the national Recovery, Transformation and Resilience Plan (PRTR).
Role of the European Hydrogen Bank
The Hydrogen Bank is the central element of European Union’s plan to construct a competitive green hydrogen market, where auction-based subsidies are used to minimize the cost gap between renewable hydrogen and its fossil-based alternative. Under the AaaS arrangement, single EU member states can put national money into EU auctions, thus increasing the supported projects without having to launch different national calls.
Funding Split Across Key Hydrogen Sectors
With the €415 million being invested in hydrogen, Spain will spread this money over two of the three funding categories, the so-called “topics,” under the third auction of the Hydrogen Bank:
- €278.6 million will support Topic 1, which focuses on the production of clean hydrogen from non-biological sources (RFNBO).
- €136.4 million will be used for Topic 3, devoted to RFNBO hydrogen for maritime and aviation transport.
Support will be limited depending on the amount of money set aside nationally for each topic. If funds are not fully used in one category, Spain may reallocate the remainder between the two.
€50 Million for Industrial Heat Decarbonisation
Spain will also join the AaaS framework of the EU’s first industrial heat auction and contribute a further €50 million to energy-efficient solutions for industrial thermal processes. The funding will be divided as follows:
- €30 million for low-temperature, low-capacity heat projects (100–400°C, 3–5 MWth).
- €20 million for low-temperature, medium-capacity projects (>5 MWth).
- Eligible Technologies and National Programs
Among the eligible technologies are heat pumps, resistive and plasma heating, solar thermal, geothermal solutions, and hybrid renewable-electrification systems. Most of these technologies are already being encouraged by Spain’s national industrial decarbonization programs, such as PERTE ERHA and the PERTE for Industrial Decarbonization.
Shorter Administrative Deadlines
Spain also stated that the administration timeline for projects chosen from the national AaaS waiting list will be shorter than that of the previous calls. Projects are required to submit all documents and necessary performance guarantees within a compressed timeframe.
Final Awards Deadline Set
The final decision on the awards must be completed by 31 August 2026 and in accordance with the funding rules under the EU Recovery and Resilience Facility (RRF) related to Spain’s PRTR.
Boost for National Competitiveness
The AaaS mechanism allows Spain to bring back high-quality local projects that narrowly failed to get EU-level funding due to budget limitations to be financed using national contributions instead. This method simplifies project selection while strengthening national competitiveness.
Over €3.1 Billion Directed to Hydrogen
With this last move, Spain has already directed more than €3.1 billion from its recovery plan to the renewable hydrogen sector and its value chain. The central government sees green hydrogen as a key component of its long-term energy transition strategy, with major effects on transport, industry, and export competitiveness.
Spain Strengthens Green Hydrogen Leadership
Spain’s deepening involvement within the European Hydrogen Bank structure is making the country one of the leading hubs in Europe for green hydrogen production and industrial decarbonisation.