Spanish energy company Cepsa plans to install 2GW of electrolyser capacity in southern Spain as part of a €5bn ($5.3bn) project aimed at developing Europe’s largest green hydrogen hub in the country’s Andalusia region.

Madrid-based Cepsa will deploy 1GW at a site in Palos de la Frontera, Huelva, next to its La Rabida energy park. A second 1GW plant will be developed at the company’s San Roque energy park in Cadiz. Total green hydrogen production at the sites will be up to 300,000t/yr.

“Andalusia has everything it takes to become one of the most competitive regions in the world for hydrogen production,” Sanchez

The Huelva plant will start up in 2026 and reach full capacity in 2028, while the Cadiz facility will be operational in 2027. Cepsa is already working on the engineering and administrative processing parts of the project.

Cespa will invest €3bn in the electrolysers and a further €2bn in a 3GW portfolio of wind and solar projects to power the two plants.

“The Andalusian Green Hydrogen Valley is a ground-breaking project whose 2GW capacity is ten times bigger than the largest under construction in Europe today,” says Cepsa CEO Maarten Wetselaar. “The project produces green hydrogen at scale that can decarbonise industry, aviation, and heavy road and maritime transport in Europe for Europe.”

Cepsa will use the green hydrogen produced at the new plants to produce advanced biofuels for aviation, shipping and heavy land transport. It will also be used to produce green ammonia and methanol, which will ensure that green marine fuels will be available in the main Spanish ports. Cepsa is already one of Spain’s largest producers of grey hydrogen.

World benchmark

Cepsa’s electrolyser investment forms part of its strategy to position itself as the top green hydrogen producer in Spain and Portugal and to establish Andalusia as a European export hub for the fuel.

The company recently signed an agreement with the Port of Rotterdam to create the first green hydrogen trade corridor between southern and northern Europe.

"This investment will help Spain achieve its goal to become an energy exporting country, with the first European green hydrogen corridor between the Campo de Gibraltar and the Dutch Port of Rotterdam. Andalusia has everything it takes to become one of the most competitive regions in the world for hydrogen production,” says Spanish prime minister Pedro Sanchez.

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Author: Stuart Penson