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Spain Poised to Lead Europe in...Spain's abundant renewable energy resources and supportive policies position it as one of the most cost-effective regions for green hydrogen production
Spain, already a European leader in green energy with over 50% of its electricity generated from wind and solar, is now turning its focus to building a robust hydrogen industry. According to Rystad Energy, Spain could reach around 5 GW of installed electrolyzer capacity by 2030. However, the country has set a more ambitious target of 11 GW, the highest in the European Union. Achieving this goal will require additional government support through subsidy programs.
Spain's abundant renewable energy resources and supportive policies position it as one of the most cost-effective regions for green hydrogen production. Although the global hydrogen market has not yet met initial high expectations, Spain's prospects remain strong. The Puertollano green hydrogen plant, with a capacity of 20 MW, is one of the few operational projects globally, and experts predict that Spain’s production could increase significantly by 2030.
Government backing is evident in BP’s recent decision to invest in the Castellón refinery hydrogen plant, which could expand to 2 GW of electrolysis capacity by 2035. Additionally, Spain's government has launched a €1.2 billion funding program to support large-scale green hydrogen projects. To qualify, applicants must produce hydrogen from renewable sources and sell at least 60% of their output, further solidifying Spain’s leadership in the green hydrogen revolution.