Spain increases its green hydrogen ambition to 12 GW by 2030

Spain is stepping up its green hydrogen strategy, with a new target of 12 GW of electrolysers by 2030, marking a turning point in its energy policy.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

Spain is readjusting its green hydrogen ambitions, now setting a target of 12 gigawatts (GW) of electrolyser capacity by 2030.
This increase, compared with the 11 GW proposed in the draft 2022 update, illustrates the country’s determination to establish itself as a European leader in the production of hydrogen from renewable electricity.
This strategy is in line with the soon-to-be-approved National Energy-Climate Plan, and constitutes an essential reference for investors and industrial players.
While some players in the European energy market, notably Norway, have recently scaled back their low-carbon hydrogen projects, Madrid seems to be maintaining the opposite trajectory.
Indeed, the abundant availability of natural resources such as solar and wind power makes Spain a prime candidate for the production of green hydrogen, a key technology in the continent’s decarbonization efforts.

An Industrial Strategy Supported by Investment

To support this ambition, Spain has recently allocated subsidies for several major green hydrogen projects.
Interested investors include major industrial players such as Chinese electrolyzer manufacturer Hygreen Energy and the Envision Group, also based in China.
These investments are aimed at strengthening the infrastructure needed to develop a competitive hydrogen value chain.
However, the sector still faces challenges.
Dependence on public subsidies and the still uncertain demand for green hydrogen are slowing down the development of certain projects.
For example, Shell recently abandoned a blue hydrogen project in Norway due to high costs and lack of sufficient demand.
Similarly, Equinor cancelled a similar initiative earlier this year.
These withdrawals reveal the current limits of a market that still needs political and financial support to consolidate.

A complex European context

Spain is no exception in the wider context of the European Union, where energy plans must constantly adapt to market realities.
Last June, Madrid missed the deadline for submitting its National Energy-Climate Plan to the European Commission.
This delay is not an isolated one, with many other countries also falling behind on the submission of their respective plans.
Despite this, the Spanish government is maintaining its clear objectives, including a 32% reduction in greenhouse gas emissions by 2030 and an increase in energy storage capacity to 22.5 GW, compared with the 22 GW initially planned.
These minor adjustments do not alter the country’s overall trajectory, which aims to remain a key player in Europe’s energy transition.

Persistent Challenges for the Hydrogen Sector

The cost of producing green hydrogen remains one of the main obstacles to its widespread deployment.
At present, it is more expensive than hydrogen produced from natural gas.
This cost difference, combined with uncertainty about future demand, explains why some projects have been put on hold.
Yet green hydrogen is seen as central to the decarbonization of the European economy, particularly in sectors that are difficult to electrify, such as heavy industry and shipping.
Despite these obstacles, Spain continues to rely on state-of-the-art infrastructure and strategic partnerships to maintain its competitiveness in this booming market.
The government hopes that the acceleration of projects in the hydrogen sector will attract further investment and foster the emergence of new technologies to reduce long-term costs.

An International Hydrogen Race

In this hydrogen race, Spain is positioning itself as a competitive player within the European Union.
France, Germany and other European countries have also announced major projects in this field, although some are more cautious due to economic challenges.
Spain’s strategy relies on its ability to attract foreign capital and leverage its natural resources to accelerate the development of green hydrogen.
Spain could benefit from its geographical proximity to North Africa, a region with significant potential for renewable energy production.
This strategic position could enable the country to become a hub for green hydrogen exports to the rest of Europe and beyond.
The future of green hydrogen in Spain will largely depend on the government’s ability to balance its ambitions with the economic and industrial realities of the sector.
However, with a clear roadmap and targeted investments, Spain continues to position itself as a potential leader in clean energy production and in Europe’s decarbonization efforts.

Endua, an Australian technology company, has received $4.88mn in public funding to strengthen its capacity to produce modular hydrogen electrolysers, supporting the expansion of local supply chains and industrial development within the hydrogen sector.
HydrogenXT secures a $900mn agreement with Kell Kapital Partners Limited to develop the first ten local zero-carbon blue hydrogen plants along key logistics corridors in the United States.
Elogen completes delivery of a 2.5 MW proton exchange membrane electrolyser for the Baseload Power Hub, linked to the Hollandse Kust Noord offshore wind farm and operated by CrossWind joint venture.
Fotowatio Renewable Ventures joins forces with Envision Energy for the H2 Cumbuco project, aiming for a 500MW green ammonia plant targeting Brazilian, European, and Asian markets.
Element 2 strengthens its partnership with HRS to install a mobile hydrogen station in Glasgow, as part of its expansion strategy for its refuelling network in the United Kingdom and Ireland.
Global hydrogen development, supported by more than 1,500 ongoing projects and significant investments, is driving strong demand for insurance coverage, with potential estimated at over USD3bn in annual premiums by 2030.
ArcelorMittal Brazil begins a collaboration with Utility Global to develop a clean hydrogen project using the patented H2Gen system, aimed at producing up to 3 tons per day at the Juiz de Fora plant.
ENERTRAG announces the acquisition of a plot in Prenzlau to install a 130 megawatt green hydrogen production unit, with a planned investment of €300 mn, thereby supporting the regional economy and local industrial sector.
H2APEX Group SCA has completed a EUR30mn ($32.5mn) capital increase to finance the acquisition of HH2E Werk Lubmin GmbH and support the development of its hydrogen project in Germany. —
Next Hydrogen launches the largest onsite clean hydrogen production and distribution station in Ontario, capable of supplying up to 650 kg per day for powering fuel cell forklifts.
A 5,500-horsepower harbour vessel was bunkered with green ammonia at the Dalian terminal, marking the creation of a full value chain for this fuel and a technical milestone for the maritime sector.
Air Liquide begins construction of the ELYgator electrolyser in Rotterdam, a 200 MW project, supported by the Dutch government and an investment exceeding €500 mn.
A pilot project in Germany aims to produce green hydrogen at sea directly from untreated seawater on offshore wind farms, using marine bacteria and robust materials.
BP withdraws from the Australian Renewable Energy Hub, a major renewable hydrogen and ammonia project in the Pilbara region, marking a new stage for energy investments in Australia.
Next Hydrogen raises CAD1.5mn from its management and a commercial lender to strengthen its cash flow and retain teams, while maintaining its review of financial and strategic solutions.
The first European citizen funding campaign dedicated to green hydrogen enabled Lhyfe to collect €2.5mn from nearly 1,200 investors, strengthening the development of new sites in France and Germany.
In the face of renewable energy intermittency, Power-to-Hydrogen-to-Power (PtP) technology could revolutionize energy storage. However, its adoption still depends on cost reduction and efficiency improvements.
South Korean company YPP and Kazakh Invest have signed a framework agreement for the development of a green hydrogen production project in Kazakhstan, with investments potentially reaching $3.1 billion.
The Dutch government has granted major funding to HyCC for its H2eron electrolysis project, aimed at producing renewable hydrogen in the Delfzijl industrial zone.
ACWA Power has signed several agreements with European partners to develop a green energy export chain between Saudi Arabia and Europe, as part of the India-Middle East-Europe Economic Corridor project.
Consent Preferences