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Spain calls for hydrogen project registration following Eur1.5 billion pledge

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Spain calls for hydrogen project registration following Eur1.5 billion pledge

Highlights

Ministry opens month-long call for expressions of interest

Spain to dedicate Eur1.5 billion to hydrogen through 2023

Energy, industrial companies outline investment plans

  • Author
  • Gianluca Baratti
  • Editor
  • Henry Edwardes-Evans
  • Commodity
  • Electric Power Natural Gas Petrochemicals
  • Topic
  • Energy Transition Hydrogen: Beyond the Hype

Spain's government has opened a month-long window for green hydrogen project developers to register their plans with the state following a pledge to invest Eur1.5 billion ($1.8 billion) in the sector through to 2023.

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The Ecological Transition Ministry Nov. 19 said it had opened an "expression of interest" procedure for developers to register plans and detail how projects benefit the value chain for renewable hydrogen.

Developers are also to demonstrate project alignment with employment, industrial development and decarbonization goals, the ministry said.

The call followed an announcement Nov. 19 by Prime Minister Pedro Sanchez that Spain would invest Eur1.5 billion of its estimated Eur72 billion European Recovery Fund allowance on green hydrogen projects.

In October Spain approved a Hydrogen Roadmap through to 2030 with an expected investment of Eur8.9 billion in the sector. Targets include reaching 4 GW of electrolyzer capacity and developing a fleet of vehicles and two hydrogen train lines.

The initiative has been backed by of some of Spain's largest energy and industrial groups.

Spain's largest oil and gas group Repsol, which is also the country's largest consumer of hydrogen, is to invest between Eur2.2 billion and Eur2.9 billion through to 2026 in hydrogen projects, CEO Josu Jon Imaz said during a virtual conference Nov. 19.

The company has 210 MW of biomethane-based hydrogen projects as well as a further 210 MW of generation projects at its Cartagena and Bilbao refineries, he said.

Utility Iberdrola plans to invest Eur1.8 billion to build 800 MW of electrolysis capacity at two ammonia factories belonging to Fertiberia in Puertollano and Palos de la Frontera. The first of these is already under construction.

The company said Nov. 18 that it signed a memorandum of understanding with Norwegian group Nel to build a 200 MW-plus green hydrogen production plant in Spain by 2023.

Iberdrola CEO Ignacio Sanchez Galan said Spain would have to move quickly in the sector due to growing competition.

Gas grid operator Enagas has earmarked investment of Eur300 million through to 2026 with a view to exporting hydrogen via its pipeline system. The company is involved in a number of other projects, which could see investment of Eur1.5 billion in 2021-2023, CEO Antonio Llarden has said.

Spanish train-maker Talgo, meanwhile, has announced it expects to carry out a first round of testing on its hydrogen train project in 2021, with potential first runs in 2022 or 2023.