BP and EDP hold investment in green hydrogen projects until Spanish government releases promised cash
Oil giant is also waiting for Madrid to firm up renewable H2 regulation so it can pull the trigger on billions of euros in investment
Two developers of large-scale green hydrogen projects in Spain, BP and EDP, are still waiting on the national government to deliver its promised grants, which the firms need to pull the trigger on billions of euros in investment.
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Spain’s Prime Minister Pedro Sánchez earlier this month pledged to allocate €900m across ten projects.
Spanish press reported that the company is expecting up to €78m in funding from the national government for the project.
EDP has already secured €48m of the plant’s €200m development cost via the EU Innovation Fund and Spain’s post-Covid recovery plan.
This EU-level policy includes a target for 42% of hydrogen used in industry to be renewable by 2030.
However, BP appears to be waiting on Spain’s government to publish the exact regulations that will incentivise companies to meet this target.
EU member states were given 18 months from October 2023, when RED III was published in the official journal, to transpose the targets into their national laws, which could potentially take the form of strict penalties and include interim milestones toward meeting the 42% target.
Guevara reportedly raised that a draft ministerial order has already been published and gone through public consultation, suggesting Spain could see this regulation finalised well before the spring 2025 deadline.
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