Lisbon-headquartered EDP and Spanish oil and gas firm Cepsa have agreed to jointly explore the co-development of a 1GW green hydrogen project in Spain’s Cadiz province, as part of Cepsa’s $5bn Andalusian Green Hydrogen Valley initiative.

The two companies plan to convert EDP’s coal-fired thermal power plant in Los Barrios into a green hydrogen production facility, with potential collaboration on the manufacturing of low-carbon marine fuels such as ammonia and methanol.

EDP has previously indicated that a green hydrogen conversion project at the Los Barrios power plant could provide seaborne hydrogen exports. The Los Barrios conversion was also allocated EU funding as an Important Project of Common European Interest in September last year.

$5bn – Cepsa’s planned spend on Andalusian Green Hydrogen Valley

“This agreement with Cepsa is an important milestone for the conversion of EDP's thermal power plant in Los Barrios and to promote industrial decarbonisation through green hydrogen, being another step to strengthen the energy independence in Europe,” says Miguel Stilwell d'Andrade, CEO of EDP.

Cepsa has previously announced it would install 2GW of electrolyser capacity in southern Spain, including a 1GW plant at its San Roque energy park in Cadiz, planned for startup in 2027.

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Author: Polly Martin