Spain has seen a number of green hydrogen partnerships over the past week as developers seek to make use of the country’s supply of low-cost renewable electricity, as well as national and regional targets for production and end-use.

Spanish utility Acciona and US technology firm Plug Power have unveiled through joint venture Accionaplug their plans to build a 3,880t/yr green hydrogen plant in the province of Navarre, with startup at the end of next year.

The project, called Valle H2 Navarra, will use a 25MW electrolyser—with the possibility to scale up to 50MW depending on demand—powered by 25MW of solar and 24MW of wind capacity, all of which will be from newbuilds.

“A major step forward in our commitment to green hydrogen as a key energy vector to decarbonise our own activity and that of our customers” Wetselaar, Cepsa

Almost all of the project’s hydrogen will be consumed by energy-intensive industries in the area, such as paper, glass, steel, food and vehicle manufacturing. Offtake is also expected by Plug’s existing customers in materials handling, stationary power and on-road mobility applications. Only 10pc of the plant’s hydrogen will be used to supply a hydrogen refuelling station to be constructed at the project.

Valle H2 Navarra has already seen strong support from local government, with Navarre’s president, Maria Chivite, indicating the regional government would declare it an investment of interest, thereby speeding up processing and development. Navarre has set a target to have 10–30MW of installed green hydrogen projects by 2024, scaling up to 150MW by 2030—just under 4pc of the national government’s target for 4GW of capacity by that year.

Hydrogen valley

In a separate move, Cepsa and Fertiberia—two of Spain’s largest hydrogen consumers—have entered a strategic partnership to progress the former’s 1GW green hydrogen project in Huelva, as part of the planned Andalusia Green Hydrogen Valley. Production is expected to begin in 2026.

The two firms plan to use the green hydrogen and oxygen byproduct to decarbonise their own industrial processes in the region. Spain currently targets 25pc of hydrogen consumed by industry to be renewable by 2030.

“We are adding a new strategic partner to the Andalusian Green Hydrogen Valley to continue promoting the decarbonisation of industry in Huelva and make it a benchmark for sustainability in Europe,” says Maarten Wetselaar, CEO of Cepsa. “Our agreement with Fertiberia is a major step forward in our commitment to green hydrogen as a key energy vector to decarbonise our own activity and that of our customers.”

Cepsa and Fertiberia will also consider producing derivatives ammonia and methanol for domestic consumption and export. Cepsa has recently signed a memorandum of understanding to supply Rotterdam’s ACE terminal with green hydrogen.

Spain is also a partner on the planned H2Med pipeline, linking the country and Portugal to France and Germany. The 2mn t/yr pipeline is scheduled to begin operations in 2026, assuming financing has been secured.

Consultancy Aurora Energy Research estimates the cost of green hydrogen production in Spain in 2030 will be around €3.10/kg ($3.30/kg), resulting in a price of €3.46/kg for German consumers if transported via pipeline.

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Author: Polly Martin