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    Europe's green hydrogen hub to be in Andalusia

    December 2, 2022 - CE Noticias Financieras


      More than 3,000 million euros, two plants in Campo de Gibraltar (Cadiz) and Palos de la Frontera (Huelva), two gigawatts of production and three gigawatts in wind and solar projects, 300,000 tons of green hydrogen per year, 10,000 jobs, and 50% of the green hydrogen production planned by the Government for the whole of Spain in 2030. This is the Andalusian Green Hydrogen Valley project that Cepsa will carry out in Andalusia, and which will place it "as the largest green hydrogen hub in Europe". Specifically, the company will build two plants: one of one gigawatt in Palos de la Frontera (Huelva) and another one of another gigawatt in San Roque (Cadiz), "the two largest facilities for the manufacture of this energy vector projected in Europe", according to Cepsa. The Huelva plant will be located next to the La Rábida Energy Park and will start up in 2026, reaching maximum capacity in 2028; the Cádiz facility will be in the San Roque Energy Park and will be operational in 2027. Cepsa is already working on the engineering and administrative processing of the project.

      To generate the renewable electricity needed to produce this green hydrogen, Cepsa will develop a portfolio of 3 GW of wind and solar energy projects, which will involve an additional investment of 2,000 million euros. In addition, the company will collaborate with other renewable energy producers in Andalusia and the rest of Spain to promote the integration of these new plants into the electricity system. This project, part of the company's 2030 strategic plan, "will turn this region and Spain into an energy powerhouse, contributing to Europe's security of supply and energy independenceW, in line with the objectives of the European Union's REPowerEU strategy. This investment represents the biggest milestone to date in Cepsa's 2030 strategy, Positive Motion, through which "the company aims to be a leader in sustainable mobility and in the production of green hydrogen and advanced biofuels in Spain and Portugal, thus becoming a benchmark in the energy transition".

      Pedro Sánchez, President of the Government of Spain: "This investment will help Spain achieve its goal of becoming an energy exporter, through the first European green hydrogen corridor between the Campo de Gibraltar and the Dutch port of Rotterdam. Andalusia has all the conditions to be one of the most competitive regions in the world in hydrogen production".

      Juan Manuel Moreno Bonilla, President of the Regional Government of Andalusia: "We are talking about the great energy source of the future. With it, it will be possible to achieve decarbonization in industry, mobility and homes. And Andalusia has the leadership, position and strength to be at the forefront in the generation and export of green hydrogen. Public-private collaboration can strengthen our position in the production of this clean energy vector that is green hydrogen. That is why we are working to set up an Andalusian Green Hydrogen Alliance in which the Administration and all interested agents participate. The Andalusian Green Hydrogen Valley is a pioneering project that, with 2 GW of capacity, multiplies by ten the largest initiated in Europe to date. This large-scale production will be a vital contribution to the continent's energy transition and security of supply, producing sustainable energy in Europe and for Europe."

      Maarten Wetselaar, CEO of Cepsa: "The Andalusian Green Hydrogen Valley is a pioneering project that, with 2 GW of capacity, is ten times the largest initiated in Europe to date. This large-scale production will be a vital contribution to the energy transition and security of supply of the continent, producing sustainable energy in Europe and for Europe".

      More about the project

      The Andalusian Green Hydrogen Valley will produce 300,000 tons of green hydrogen per year, which will drive the decarbonization of its Energy Parks, where the company will produce advanced biofuels for aviation (SAF), maritime and heavy land transport. Hydrogen will be especially important for the manufacture of by-products such as green ammonia and methanol, which will ensure the availability of green marine fuels in the main Spanish ports, helping the decarbonization of customers in the maritime sector.

      The implementation of this project - Cepsa reports - will avoid the emission of six million tons of CO2 per year, as well as improving air quality by avoiding the emission of other gases and particles. In addition to replacing gray hydrogen in industrial processes, green hydrogen will also have a multiplier effect by being used in the production of renewable fuels that will replace traditional fossil fuels.

      Commitment to Andalusia

      Through this initiative, Cepsa reinforces its commitment to Andalusia as the central axis of its strategic plan. "The region has the best conditions to be one of the most competitive and efficient in the world in the production of green hydrogen," they add. Currently, 40% of the hydrogen produced in Spain is consumed in this autonomous community, so San Roque and Palos de la Frontera, where there is already a relevant industrial fabric, are privileged locations for the development of large-scale projects. Furthermore, it is one of the places in Europe with the greatest capacity for the generation and production of wind and solar photovoltaic energy at the lowest costs.

      The development of this project will guarantee the future of Andalusian industrial employment, as it will generate 10,000 jobs, including direct, indirect and induced jobs, of which one thousand will be direct. The company will work on the training of new job profiles through its own training centers in the Energy Parks, as well as through its alliances with different universities in the region.

      Andalusia has a first class port infrastructure, connected to the main ports of Europe and the world. The ports of Algeciras and Huelva are two key locations on the export and maritime traffic routes both to Northern Europe and to Asia and Africa. The establishment of the Andalusian Green Hydrogen Valley will position the Andalusian ports as world references in the international green hydrogen corridors and the supply of new sustainable fuels for maritime transport. In this regard, Cepsa has recently reached an agreement with the Port of Rotterdam to create the first green hydrogen corridor linking northern and southern Europe.

      This project will also boost the economic activity of more than 400 SMEs in the area and will act as a tractor project to attract new industry and investment from other links in the hydrogen value chain, such as electrolyzer factories, green fertilizer plants or hydrogen transport technology. Cepsa's objective is to promote alliances and collaborations to improve the competitiveness of the important industrial centers in Andalusia, through the supply of affordable, accessible, safe and available energy.


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