- Spain raises the green hydrogen target to 12 GW by 2030, aiming to lead Europe in renewable hydrogen production, leveraging its vast solar and wind resources.
- International investments flood in, with major companies like Hygreen Energy and Envision Group supporting large-scale hydrogen projects backed by government subsidies.
- Key challenges include high costs and uncertain demand, but Spain remains committed to balancing ambitious energy goals with economic realities.
Spain raises its green hydrogen ambitions, setting a new target of 12 gigawatts (GW) of electrolyser capacity by 2030, an increase from last year’s 11 GW proposal. This move highlights the country’s determination to lead in renewable hydrogen production in Europe.
The updated target aligns with Spain’s forthcoming National Energy-Climate Plan. The country’s abundant solar and wind resources position it as a significant player in Europe’s push to decarbonise, particularly in green hydrogen, which holds importance for sectors that are hard to electrify.
While some European countries, such as Norway, scale back hydrogen projects due to high costs and uncertain demand, Spain pushes ahead. The government provides subsidies for large green hydrogen projects, attracting international companies like Chinese electrolyser maker Hygreen Energy and Envision Group. These investments aim to build a competitive hydrogen value chain and support the necessary infrastructure.
However, the green hydrogen sector faces notable challenges. Companies depend heavily on public subsidies, and uncertain demand slows project progress. For instance, Shell abandoned a blue hydrogen project in Norway due to high costs and low demand, while Equinor cancelled a similar venture earlier this year.
Spain faces challenges similar to those of other European nations, where energy plans continually shift in response to market changes. In June, Madrid missed the deadline to submit its National Energy-Climate Plan to the European Commission. Many other EU countries face similar delays. Despite these setbacks, Spain remains committed to reducing greenhouse gas emissions by 32% by 2030 and increasing energy storage capacity to 22.5 GW, a slight increase from earlier goals.
One of the biggest obstacles remains the high cost of producing green hydrogen. Green hydrogen currently costs more than hydrogen made from natural gas. This price gap and uncertain demand have led many companies to delay projects. Yet, Europe views green hydrogen as essential for its energy transition, especially for industries like heavy manufacturing and shipping that cannot easily switch to electric power.
Spain looks to accelerate its green hydrogen projects to attract more investment and foster innovation to lower costs. The government builds strategic partnerships and focuses on advanced infrastructure to maintain Spain’s competitiveness in this rapidly expanding market. Its proximity to North Africa, a region with vast renewable energy potential, gives Spain a strategic edge in becoming a hub for green hydrogen exports to Europe.
Spain’s success in green hydrogen will depend on balancing ambitious goals with the industry’s economic realities. Despite the challenges, the country’s clear roadmap and focused investments position it as a key player in Europe’s clean energy transition, joining other significant players like France and Germany.
As the European hydrogen race intensifies, Spain relies on foreign investment and natural resources to speed up green hydrogen development and secure its role as a leader in the field.