Grants for the development of renewable hydrogen production projects
Published on 4th Sep 2024
The IDAE (Spanish Institute for Energy Diversification and Saving) is launching a call for proposals for an incentive programme for projects for large-scale production and consumption of renewable hydrogen and derived fuels.
The Official Gazette of 2 August 2024 published the extract of the resolution of 30 July 2024, of the IDAE, by which the first call was made for the incentive programme for renewable hydrogen production and consumption projects (clusters or valleys) within the framework of the Recovery, Transformation and Resilience Plan, financed by the European Union, for a total amount of 1,200,000,000 euros. This resolution is available at the following link (only in Spanish): Resolution of 30 July 2024.
The incentive will take the form of a non-repayable grant. Eligible projects shall be those necessary to develop large-scale renewable hydrogen generation projects (minimum 100 MW of electrolysis power), and where appropriate, their derived fuels, in the same territorial area or 'hydrogen valley'. A single project may be located in more than one geographical location, provided that the installations forming the project are located in the same 'hydrogen valley' or locations not more than 100 km apart. In this case, the installations making up the single project must have an individual capacity of at least 50 MW.
Eligible projects must have been initiated after 9 March 2023. The period for carrying out the subsidized actions may be extended up to 36 months from the date of the decision of the grant.
The same applicant may participate with more than one project in the call for proposals, although the aid to be granted may not exceed the aid limit per project and company of 33% of the budget available in the call for proposals.
In order to participate in the call for proposals, it must be demonstrated that it has consumption commitments for at least 60% of the hydrogen or fuels to be produced.
The grant will be allocated on a competitive basis, with applications being ranked on a scale of 1 to 100 on the basis of economic, technical and environmental/socio-economic criteria.
The deadline for submission of applications is 19 September at 11:00 a.m. and ends at 11:00 a.m. on 29 October 2024.
Should you wish to find out more about the new regulations and their potential implications, please do not hesitate to contact one of our experts listed below or your usual Osborne Clarke contact. At Osborne Clarke we are committed to keeping abreast of the impacts this new regulation may have on the sector.
