Spain opens Public Consultation on Hydrogen Valley and Cluster Funding

The Spanish Ministry of Ecological Transition and the Demographic Challenge (MITECO) has opened a public consultation on the bases for granting aid to hydrogen valleys and clusters. The consultation period is open from June 12 to June 21, 2024.

The order of bases is aimed at establishing calls for aid for renewable hydrogen valley or cluster projects, and is mainly linked to investment C31.I2 of the Recovery, Transformation and Resilience Plan (PRTR).

The object of these investments is to promote renewable hydrogen and electrolytic production projects and/or their derived fuels that meet the conditions established in point 2.5.1 of the Communication of the European Commission of March 17, 2023 (2023/C 101/03) on the Temporary Crisis and Transition Framework (MTCT) on state aid measures to support the economy following Russia's aggression against Ukraine.

By promoting the implementation of this type of project, it contributes to reducing the external dependence of the Spanish and European economy, as well as to developing national and European capacities for the implementation of renewable and "decarbonization" technologies in different sectors of the economy, as well as to achieving the objectives set in the National Integrated Energy and Climate Plan (PNIEC) 2021-2030, and the Long-Term Energy Strategy 2050.

Background

The promotion of the renewable hydrogen sector is part of the measures envisaged in the Strategic Energy and Climate Framework for the energy transition towards climate neutrality.

Investment 2 of component 31 of the Addendum to the Recovery, Transformation and Resilience Plan contemplates the promotion of renewable hydrogen production and consumption projects and/or their derived fuels (clusters or valleys), with IDAE being the executing entity of the project within which this line of aid is framed. Investment 1 of component 9 also includes actions dedicated to the promotion of clusters or valleys. Additionally, investment 1 of component 9 included the H2 Pioneers Program aid line focused on renewable hydrogen production smaller than that provided for in this aid line.

The approval of the Addendum to the Recovery, Transformation and Resilience Plan has made it possible to increase the ambition of the aid lines for the renewable hydrogen sector by increasing the available budget allocated to meeting the REPowerEU objectives. In order to accelerate and simplify the granting of these aids, the Commission adopted in March 2023 the Temporary Crisis and Transition Framework (MTCT) to promote support measures in key sectors for the transition to a net zero emissions economy, in line with the Green Pact Industrial Plan.

The way for IDAE to carry out its activity as an executing entity of funds from the Recovery, Transformation and Resilience Plan is to publish an order of grant bases that regulates the regulatory framework under which the different competitive calls for aid will be developed throughout the validity of the line of aid.

Between April 8 and 22, 2024, the prior public consultation of this initiative was carried out.

Motivation

As part of the response package to the energy crisis derived from the invasion of Ukraine by Russia, the Communication of the Commission, on the REPowerEU Plan, highlights the role of hydrogen in phasing out fossil fuel imports and its contribution to the transition towards the EU's climate target.

This importance is reflected in the ambitious objectives set for the use of this energy vector, consisting of doubling the EU's initial renewable hydrogen forecasts to 10 million tonnes of annual national production, plus another 10 million tonnes of annual imports by 2030.

To this end, the renewable hydrogen clusters or valleys that this initiative seeks to promote are key to achieving these objectives by bringing together, in a specific location, multiple stages of the hydrogen value chain, from production, storage and distribution to various users, such as the transport sector, industry and end users of energy.

Additionally, with this initiative it is intended to contribute to the execution of the Recovery Transformation and Resilience Plan, taking into account both European and national associated regulations, through the mobilization of funds financed by it.

State Framework

The PRTR contemplates ten lever policies and thirty components, collecting a set of investments and reforms aimed at recovery and promoting a change in the economic, productive and social model to address future challenges in a balanced way: towards a more sustainable, digitized, equal and more socially cohesive Spain.

On the basis of the experience of the first phase of the Recovery Plan in the period 2021-2023, an Addendum to the Plan was launched that will allow the strategic reindustrialization of the country to be consolidated by mobilizing more than 10,000 million euros in additional transfers and up to.

Deadline for referral
Deadline for lodging observations from Wednesday, 12 June 2024 to Friday, 21 June 2024

Submission of allegations
The allegations may be sent to the following address: bzn-h2renovable@miteco.es

They should indicate the following points:
Subject: "Information on Renewable Hydrogen Valleys or Clusters".
Name and surname(s)/name(s) or company name(s) of the participant
Organisation or association (if applicable)
Contact (e-mail)
Only answers in which the sender is fully identified will be considered (full name together with DNI or CIF depending on the physical or legal personality).
In general, replies will be considered as non-confidential and free to circulate. The parts that are considered confidential must be specifically indicated and delimited in the comments, giving the reasons for this classification.