July 15, 2025 [H2 View]- Spain has awarded three green hydrogen projects with a combined capacity of 485MW up to €377m ($440m) in production subsidies under the European Hydrogen Bank’s (EHB) national auction scheme.

The three projects to secure funds are EP2X, eM-Numancia, and Orange.bat, and will receive €246m ($287m), €44m ($51m), and €83m ($97m), respectively, through the country’s EU-backed Auction-as-a-Service (AaaS) programme.

The developments will receive subsidies of up to €0.69/kg ($0.81) for ten years, using a €400m Recovery, Transformation and Resilience fund, after they missed out on subsidies from the second EU-wide EHB auction round due to the high level of applications.

Together, the three projects are expected to produce 585,860 tonnes of renewable hydrogen over a ten-year period, supporting Spain’s ambition to become a leading hydrogen producer in Europe.

The awarded subsidy rates – €0.61/kg ($0.71) for EP2X and €0.69/kg for eM-Numancia and Orange.bat – are in line with those set under the European Hydrogen Bank’s second auction, which was heavily oversubscribed.

The EP2X project, developed by ErasmoPower2X (a subsidiary of Dutch developer Power2X), will pair 1.2GW of solar PV with 325MW of electrolysis in Saceruela, Ciudad Real.

The 55,000 tonnes of green hydrogen produced per year will feed into e-methanol production in collaboration with Magnon, part of Spain’s Ence Group, as part of a broader industrial decarbonisation strategy.

Elyse Energy’s eM-Numancia project in Garray, Soria, also targets e-methanol production, combining its 60MW electrolyser with CO₂ captured from nearby biogenic sources.

The project forms part of Elyse’s Iberian portfolio and follows a recent €120m ($140m) fundraising round to advance multiple e-fuel and SAF initiatives across Spain and France.

Orange.bat, a 100MW electrolysis project by Swiss-based Smartenergy, is located in Onda, Castellón, at the heart of Spain’s ceramics industry. The project aims to displace natural gas use in industrial kilns with green hydrogen, reducing CO₂ emissions by over 100,000 tonnes annually.

It recently became the first hydrogen plant in the Valencian Community to receive environmental approval, and has been granted Priority Investment Project status by the regional government.

The awards form part of Spain’s broader ambition to become a European hydrogen hub, leveraging its abundant renewable resources, strong port infrastructure, and growing domestic demand.

Last September the government unveiled plans to see green hydrogen meet 74% of its industrial hydrogen demand by 2030 and trebled its installed electrolyser capacity target to 12GW.