794 million to boost green hydrogen. And in the meantime?

This week, the Spanish Council of Ministers has allocated 794 million euros in direct aid to 7 large projects for the production and intensive use of renewable hydrogen in industrial activities, financed by the European Commission. With this, the Government of Spain aims to achieve production close to the point of consumption for the gradual replacement of fossil-origin energy with hydrogen, so that the entire industry can experience the benefits of decarbonization.

The electrification of Spanish industry is strategic in the decarbonization of the economy. At the same time, the boost to green hydrogen obtained with renewable energy could facilitate the decarbonization of industries that are difficult to electrify. Once realized, green hydrogen would be an alternative to fossil fuels to improve industrial competitiveness, especially in those sectors intensive in heat use. It is a great ally for decarbonizing, for example, the chemical, steel, or cement industries, as well as aviation and maritime transport. It is important to emphasize that, beyond its development at scale, supply points must be located where the industry requires them.

Hydrogen, more than a fuel, is an energy vector that can utilize the surplus of photovoltaic and wind energy that cannot be fed into the grid, reinforcing the guarantee and continuity of supply of this renewable electricity for the entire industrial system. But, in the meantime, we need to continue advancing in decarbonization through other means. Given the current development level of this technology, hydrogen is a long-term future bet. Currently, we need more immediate solutions to decarbonize industry, such as strengthening distribution networks and battery storage systems to promote the use of renewable electricity.

From Foro Industria y Energía, we celebrate this commitment by the Government to green hydrogen, which follows the industrial decarbonization agenda, and we remind that this measure must be accompanied by investments in human capital and infrastructures that strengthen the industry, in addition to a decisive advance in legislation, specifically, in strengthening the European single market through energy. At the same time, we consider it important to bring these types of measures to all stakeholders in the industry, not just large companies. In this way, we will ensure a competitive, dynamic, and innovative industrial fabric in all its sectors.