A team of three inspectors from the EU Court of Auditors is visiting Spain this week to appraise the nation’s green hydrogen development.
The main goal of their visit is to gauge the private sector’s perspective on the growth of renewable gas, involving major firms such as Iberdrola, Fertiberia, and Repsol.
The inspectors will meet with top officials from the Treasury, Ecological Transition and Demographic Challenge, Industry and Science departments, as well as State Secretaries, to comprehend how Spain is utilizing funds from the subsidy programs, which companies are receiving them, for what purposes, the functioning of oversight, and the established deadlines.
Companies will take advantage of the European team’s presence to express their concerns about the sluggish disbursement of aid and advocate for an increase in non-refundable assistance. They will also highlight the inadequacies of the subsidies in reaching their goals, emphasizing their considerable investments to enable the energy transition.
The inspectors aim to evaluate the status of the Perte ERHA (renewable energy, renewable hydrogen, and storage), the advancements in the National Integrated and Climate Plan (Pniec), and the changes introduced by renewable gas in the Repower EU plan. They will also examine the measures the Ministry of Ecological Transition is employing and how these are being tailored to the interests and necessities of companies.
The Perte, a strategic project to propel green hydrogen, is progressing at a slow pace, and industry insiders are advocating for increased action. They argue that Spain already possesses the funds to back the project, with an initial estimate of the roadmap at €1.5 billion. However, the first two allocations only totaled €400 million: €150 and €250 million, respectively.
The government remains hopeful and does not anticipate a confrontational EU team visit. However, small and medium-sized businesses have had to make considerable financial commitments, and their investment plans have been restructured due to a lack of project funding.
The European team will tour the green hydrogen hub in Puertollano (Ciudad Real) to examine the entire infrastructure established there. They will also visit the Iberdrola facility, which comprises a 100 MW photovoltaic solar plant, a lithium-ion battery system with a 20 MWh storage capacity, and one of the world’s largest hydrogen production systems through electrolysis, up to 20 MW. The investment is expected to mobilize around €150 million and create up to 1,000 jobs. Lastly, new ventures, such as a green steel production plant, will enhance this hydrogen hub.
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The European team’s visit underscores the growing significance of green hydrogen in achieving climate goals and the private sector’s role in carrying out these initiatives. The inspectors’ evaluation of Spain’s progress and the distribution of funds and subsidies will contribute to transparency and accountability in the use of public resources.
