Spanish energy company Cepsa and the Port of Rotterdam have agreed to work together to support the creation of a green hydrogen supply corridor linking southern and northern Europe by 2027.

The two companies have signed a memorandum of understanding to collaborate on the development of a supply chain between the Spanish port of Algeciras and Rotterdam.

Cepsa plans to export hydrogen produced at its San Roque Energy Park via Algeciras to Rotterdam in the form of carriers such as ammonia or methanol.

2GW – Cepsa’s target capacity in 2030

“The opportunity to build the first green hydrogen corridor in Algeciras, the leading energy port in Spain, demonstrates the unique role that Spain, and in particular Andalusia, will play in the energy transition in Europe,” says Maarten Wetselaar, CEO of Cepsa.

Cepsa aims to develop 2GW of electrolyser capacity in Spain and Portugal by 2030, powered by a 7GW portfolio of wind and solar capacity.

Gateway

Cepsa’s move to forge ties with Rotterdam comes as the port emerges as an important gateway for low-carbon hydrogen imports to demand centres in northwest Europe. The EU expects to import 10mn t/yr of hydrogen by 2030, according to its recently published RepowerEU energy strategy.

“Northwest Europe uses far more energy than it can produce in a sustainable way. We are therefore setting up multiple trade lanes for green hydrogen, together with exporting countries and private businesses all over the world,” says Allard Castelein, CEO Port of Rotterdam Authority. “We expect that, in 2050, some 20mn t/yr of hydrogen will flow through the port, of which only 2mn t/yr will be produced locally”.

Earlier this year, US industrial gases company Air Products and commodities trader Gunvor agreed to jointly develop a green hydrogen import terminal at Rotterdam, with the aim of supplying offtakers in the Netherlands by 2026.

One of the main infrastructure challenges to establishing high volume imports is the development of large-scale technology to crack ammonia back to hydrogen for onward transportation to offtakers, according to speakers at Hydrogen Economist’s Financing the Hydrogen Economy event in Milan last month.

 

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Author: Stuart Penson