The Spanish government has approved subsidies worth almost €800 MM ($865.52 MM) for major green hydrogen (H₂) projects, Energy Minister Teresa Ribera said on Tuesday.

Spain is vying to be a leader in Europe in green H₂—H₂ produced using renewable electricity—taking advantage of its bountiful sunshine and wind to produce clean energy.

The subsidies totaling €794 MM will go to seven projects deemed by the European Commission to be of regional value and with an overall electrolysis capacity of 652 megawatts (MW). The projects will spur investments of more than €6 B in their lifespan, according to the minister.

The subsidies will support projects that produce green H₂ close to its consumers, Ribera said. They include projects in five so-called H₂ valleys in Spain, which are large industrial hubs that integrate green H₂ production and its use, such as in producing fertilizers or powering refineries.

Green H₂ is seen as key to decarbonize Europe's economy in the future. However, given its cost, green H₂ projects in general are not competitive without subsidies.

Some 40% of the funds will go to two projects managed by oil company Repsol, each with an electrolysis capacity of 100 MW.

Almost a third, or €242 MM, will go to Spanish utility Iberdrola's projects in Puertollano in south-central Spain to develop 220 MW of electrolysis capacity.

The company, Europe's largest utility, in March scaled back its green H₂ ambitions by almost two-thirds after delays in getting funding for some projects it had announced.

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

($1 = €0.9243)