Spain emerges as leader in green hydrogen revolution

Spain is positioning itself as a frontrunner in the green hydrogen sector, leveraging its significant renewable energy capacity, Azernews reports citing Rystad Energy.

The country generates over 50% of its electricity from renewable sources, primarily wind and solar, and aims to achieve 11 GW of installed electrolyzer capacity by 2030—the highest target in the EU.

To meet this ambitious goal, Spain will need additional support through subsidy programs. Currently, it is projected to reach 5 GW by 2030. In comparison, Germany aims for 10 GW and is expected to achieve 4.5 GW.

Spain’s favorable renewable energy conditions and proactive government policies make it one of Europe’s most cost-effective regions for green hydrogen production. Key projects, such as the 20 MW Puertollano green hydrogen plant and BP's Castellón refinery—which could expand to 2 GW by 2035—highlight Spain's potential.

Support from the European Hydrogen Bank and a €794 million state aid package under the EU’s IPCEI Hy2Use program, alongside an additional €2.3 billion in subsidies from the Spanish government, are set to bolster the hydrogen sector. As Spain accelerates its hydrogen initiatives, it enters a competitive landscape alongside Germany, France, and the Netherlands, all investing heavily in this emerging market.