Cepsa to invest Euro 3 bn to build largest green hydrogen hub in Europe

Cepsa to invest Euro 3 bn to build largest green hydrogen hub in Europe

The project will be accompanied by an additional investment of 2 billion euros to develop a 3 GW portfolio of wind and solar power projects to generate renewable electricity

  • By ICN Bureau | December 05, 2022

Cepsa, the leading company in Andalusia by sales volume, will invest more than 3 billion euros to establish the Andalusian Green Hydrogen Valley, creating the largest green hydrogen hub in Europe in southern Spain.

The project, part of Cepsa’s 2030 strategy Positive Motion, will contribute to Europe's energy security and independence, in line with the objectives of the European Union's REPowerEU strategy. The investment is the biggest milestone to date of Cepsa's Positive Motion energy transition plan to lead sustainable mobility and the production of green hydrogen and advanced biofuels in Spain and Portugal this decade.

The company will build two plants with a total capacity of 2 GW to produce up to 300,000 tons of green hydrogen. The plants, with 1 GW of capacity each, will be located in Palos de la Frontera (Huelva) next to Cepsa’s La Rábida Energy Park and at the company’s San Roque Energy Park in Cádiz. The Huelva plant will start up in 2026, reaching full capacity in 2028, while the Cádiz facility will be operational in 2027. Cepsa is already working on the engineering and administrative processing of the project.

Spanish Prime Minister Pedro Sanchez said: "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.”

Juan Manuel Moreno Bonilla, President of the Regional Government of Andalusia said: “We are talking about the great energy source of the future, which can decarbonize industry, mobility and households. Andalusia has the position and strength to lead in the generation and export of green hydrogen, and public-private collaboration can strengthen our position in the production of this clean energy vector. That is why we are setting up an Andalusian Green Hydrogen Alliance in which the Administration and all interested parties will participate."

Cepsa CEO Maarten Wetselaar said: “The Andalusian Green Hydrogen Valley is a groundbreaking project whose 2 GW capacity is 10 times bigger than the largest under construction in Europe today. The project produces green hydrogen at scale that can decarbonize industry, aviation, and heavy road and maritime transport in Europe for Europe.”

Cepsa has also signed an agreement with the Port of Rotterdam to create the first green hydrogen corridor between southern and northern Europe, allowing the export of green ammonia and methanol

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