Spain to Launch $2.5 Billion Plan to Boost Green Hydrogen Production

Spanish Prime Minister Pedro Sanchez announced a new plan worth $2.5 billion to boost the country's transition to clean energy, including subsidies for green energy industries and hydrogen made from renewable power.

(Reuters) — Spanish Prime Minister Pedro Sanchez on Wednesday announced a new plan worth 2.3 billion euros ($2.5 billion) to boost the country's transition to clean energy, including subsidies for green energy industries and hydrogen made from renewable power.

The plan will also include measures to help agriculture, infrastructure and villages transition to green energy, Sanchez said in an address to the lower house.

He did not provide more details of the new plan.

Spain has positioned itself as a renewable energy leader in Europe, taking advantage of its abundant sunshine and strong winds to produce energy.

With renewables breaking records, the country is now vying to be one of the major producers in the region of green hydrogen produced from renewable electricity.

Earlier this month, Madrid approved a 794 million euro package of subsidies for large green hydrogen projects in the country with a potential overall electrolysis capacity of 652 megawatts.

Subsidies are vital for green hydrogen projects due to high costs and are not competitive without public support.

Spain's draft climate strategy a 2030 target of 11 gigawatts (GW) for electrolyzers, up from a previous 4 GW.

($1 = 0.9167 euros)