Spanish oil, gas and chemicals company Cepsa plans to position itself as the leading green hydrogen producer in Spain and Portugal and to establish a European “export gateway” for the clean fuel in Spain’s Andalusia region.

The push into green hydrogen will form part of a €7-8bn ($8-9bn) investment in cleaner technologies this decade.

Cepsa aims to increase the proportion of its Ebitda attributable to its sustainable business to more than half by 2030, up from 14pc this year.

The company, which is already one of Spain’s largest producers of grey hydrogen, will develop green hydrogen production capacity equivalent to 2GW in Spain and Portugal by 2030. It also plans to develop a 7GW pipeline of wind and solar projects, which it will use internally.

“We are embarking on an ambitious journey to transform our company and be a key driver and enabler of the energy transition” Wetselaar, Cepsa

Cepsa will convert existing refinery sites in Andalusia into energy parks that will act as import and export hubs. The company says it will become a key player in the trade of green hydrogen between Europe, Africa and the Middle East thanks to the strategic location of its facilities on the Iberian Peninsula. Industries in Andalusia account for 40pc of Spain’s current hydrogen demand.

“Green molecules are essential for the decarbonisation of complex sectors such as heavy transport, aviation and maritime traffic, and Cepsa has a competitive advantage thanks to its many years of experience in the production and handling of [hydrogen],” says Maarten Wetselaar, CEO of Cepsa.

Refuelling network

Cepsa will foster demand for green hydrogen in commercial road transport by placing hydrogen refuelling stations every 300km across all the main road transport corridors connecting Spain to Europe by 2030, according to its new strategy.

The strategy includes a focus on helping to decarbonise the firm’s customers in industry, aviation and shipping through the use of green hydrogen and biofuels. Cepsa is aiming for biofuel production of 2.5mn t/yr and sustainable aviation fuel production of 0.8mn t/yr by 2030.

The firm is targeting a reduction in its scope one and two emissions of 55pc, against 2019 levels, by 2030. For scope three emissions, it is targeting a 15-20pc reduction in carbon intensity by 2030.

“At Cepsa, we are embarking on an ambitious journey to transform our company and be a key driver and enabler of the energy transition. Cepsa is small enough to move fast yet big enough to be a leader in creating a greener, more just and more sustainable economy,” says Wetselaar.

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Author: Stuart Penson