Spain has raised its target for green hydrogen production capacity, reflecting growing confidence in a sector where some major energy companies have revised their plans amid high costs and unpredictable demand, as per a Reuters report.
The government’s updated strategy now sets a goal of 12 gigawatts (GW) for electrolysers producing green hydrogen by 2030, an increase from the 11 GW target outlined in a draft update last year, as noted in a document released by the energy ministry.
According to a Reuters report, the government is anticipated to endorse an updated national energy and climate plan, which incorporates the new target, during a cabinet meeting.
This plan serves as a crucial roadmap for businesses considering investments, as it outlines objectives for energy efficiency and renewable sources, among other areas.
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Spain aims to become a European leader in green hydrogen, produced with renewable electricity, leveraging its abundant sunshine and wind resources to generate clean energy.
The government has recently approved subsidies for major projects within the country, drawing interest from significant investors, including Chinese electrolyser manufacturer Hygreen Energy and China’s Envision Group.
In contrast, several of the largest energy companies in the region have lowered their targets or abandoned projects related to low-carbon hydrogen, underscoring the challenges faced by an industry that relies heavily on subsidies.
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Like many of its European counterparts, Madrid failed to submit its energy and climate plan to Brussels by the end of June.
While the updated plan largely aligns with last year’s draft—maintaining a 32% emissions reduction goal—it does revise certain targets, including increasing the energy storage capacity from 22 GW to 22.5 GW.
