Spain to invest €1.5 billion in ‘green hydrogen’ in bid to become Europe’s leading producer

Spain will spend €1.5 billion ($1.8 billion) from a European Union recovery fund to develop green hydrogen production over the next three years, Prime Minister Pedro Sánchez said Monday.

Spain to invest €1.5 billion in 'green hydrogen' in bid to become Europe's leading producer
“The Spanish government is firmly committed to green hydrogen,” Spain's PM has said. Photo: JENS SCHLUETER/AFP

The goal is for Spain to become Europe’s leading hydrogen producer using renewable sources instead of fossil fuels to curb greenhouse gas emissions and create jobs, he said.

“The Spanish government is firmly committed to green hydrogen,” the Socialist premier said at a ceremony in Toledo, just south of Madrid.

His government expects the outlay will stimulate €8.9 billion of mainly private-sector investment to develop the technology by 2030.

Madrid has already received over 500 “green hydrogen” project proposals from energy firms, a government statement said.

Creating “green” or emissions-free hydrogen is seen as a key step towards developing sustainable energy sources and slashing carbon emissions.

One reason for the strong interest in hydrogen technology is when used to fuel motors, the only emission is water vapour.

But it is expensive to produce and the electricity needed generates a lot of carbon dioxide emissions or other pollutants.

Green hydrogen is produced via electrolysis — an electrical current passing through water — with wind, solar or hydro-electric power providing the electricity.

Europe in particular is anxious to get a handle on the new and still costly fuel, having missed the boat on solar and battery technology, which is dominated by China.

Experts predict green hydrogen using renewable energy will soon plunge in cost and become cheaper than natural gas in many areas.

US engine maker Cummins announced Monday it would spend €50 million to build one of the world’s biggest electrolyser plants for the production of green hydrogen in Spain.

The plant, which will be built in the central region of Castilla-La Mancha, is expected to open in 2023.

“Spain offers a strong and dynamic local environment for hydrogen production, and we are excited to invest,” said Cummins chairman Tom Linebarger.

Spain is set to receive 140 billion euros — half in direct payments, half in loans — from the 750 billion-euro recovery plan adopted by EU leaders last year as the economy reeled under virus lockdown restrictions.

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Ceiling fan vs air con in Spain: Which offers the better price-coolness ratio?

When Spain's scorching summer temperatures come along, you need to look at all the possible ways of keeping cool. The big question is will a ceiling fan do the job well enough or is the extra cost of air-conditioning worth it? Here's our breakdown.

Ceiling fan vs air con in Spain: Which offers the better price-coolness ratio?

Spain, like much of Europe, has been experiencing an intense heatwave over the last week with the hottest temperatures reaching 42°C – 43°C in Córdoba.

Sweating in sweltering heat while you’re trying to work from home or sleeping at night can be very uncomfortable, sometimes near impossible, so you need an effective way of keeping cool. 

But which do you choose – a ceiling fan or air-conditioning?

Electricity costs have been reaching historic highs over the past year, with prices this Wednesday, July 20th, 124 percent higher than the same time in 2021, according to recent data from OMIE, operator of the Iberian energy market.

This means that cost is a big factor in deciding which is best.

Ceiling fans

Buying a ceiling fan can cost anywhere from €40 to €600, depending on the make you buy and the size. You should also budget extra for installation. 

Most fans use between 40W and 100W, so for example if you have an average 75W ceiling fan and run it for eight hours straight, it will use 0.60kWh.

The current electricity price for the middle of the day on Wednesday July 20th is 0.316/kWh. This means that running your fan for eight hours per day at this price will cost around €0.18, without adding on any extra fees or taxes.

Use a more powerful fan though and you could end up paying a lot more.

Air conditioners

The average price of a Split 1×1 (for one room) air-con unit in Spain can vary greatly depending on the brand and its capabilities, with prices ranging between €300 and €1,400.

Keep in mind that installation costs for split systems range from €300 to €400. This means you could be paying a total of up to €1,800 per room, but it would depend on the make. 

It’s obvious that air-conditioning is more expensive than a fan, both to buy and to run.

According to Spanish rate comparer Selectra, air-conditioning costs around €0.44 per hour at the most expensive times, which are on weekdays between 10am and 2pm and 6pm to 10pm.

This means that it’s significantly more expensive than running a fan. 

According to Spanish consumer watchdog OCU, this increase will mean an additional €36 per month for using an air con for just five hours a day, on top of your normal electricity bill.

Keep in mind this is just an average estimate. The real cost of running your air con will depend on its cooling potential and the size of your room, as well as how well insulated your property is.

Running an air conditioner is around seven to 16 times more expensive than a fan, depending on what type of unit you have.

READ ALSO: How much does it cost to have air-conditioning at home in Spain?


While cost is an important factor, it’s not the only one. You also want to know how effective your device is going to be at cooling your home, whether it’s a ceiling fan or an air con unit.

The main difference is that fans do not actually make the air in the room any colder, they only create a wind chill factor, making you feel as if you’re cooler. They simply help to evaporate sweat from your skin faster, which will cool you down.

But if the air temperature is anywhere from 30°C to 40°C, all a fan is going to do is blow the hot air around the room faster. Fans don’t cool the room down at all, they only help to make you feel more comfortable.

Air-con machines on the other hand can lower the temperature of the room, not just creating the effect of feeling cooler, but actually making it colder.

This means that air con is far more effective at helping you cope with the intense heat. 

However, the question of whether you should get a ceiling fan or an air con unit will really depend on you and where you live in Spain.

If you’re based in northern Spain, where the temperatures only occasionally reach above 30°C, then a ceiling fan will more than likely suffice, but if you live in inland Andalusia such as in Córdoba or Sevilla, where summer temperatures can regularly reach into low 40s, then a fan isn’t going to cut it.

It will also depend on how much the heat affects you and how much time you’re going to be spending at home. If you work in the office all day and have air-con there, a fan for the home may be fine, but if you work from home, you may want to invest in air-con. 

Top tips: 

  • One of the best ways to keep air-con costs down is to keep the temperature of the air conditioner at a more moderate 25°C for a longer time than to blast cool air at 16°C for a shorter period.
  • If you have both a fan and air-con, you can cool the temperature down with the air-con, then switch it off to save money and use the fan to circulate the colder air. 
  • Switching your air-con or fan on during the cheaper times of the day can also help you save money. For example, it’s less expensive to turn them on after 2pm and before 6pm on weekdays.