7.4GW green hydrogen facility launches in Spain, first part of 67GW project that aims to bring cost down to fossil-fuel levels

The HyDeal Ambition platform is a European consortium which aims to bring the cost of green hydrogen down to fossil-fuel levels via facilities like Toshiba’s pilot solar-to-hydrogen project in Fukushima prefecture, Japan. Image: Toshiba.

A green hydrogen hub has been launched in Spain that will have a 7.4GW electrolysis capacity powered from 9.5GW of solar power by 2030.

Due to start production in 2025, the HyDeal España hub is the first industrial implementation of the HyDeal Ambition platform, a European consortium which aims to bring the cost of green hydrogen down to fossil-fuel levels.

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It plans to do so via a platform with 67GW of electrolysis capacity, powered from 95GW of solar, in what the International Renewable Energy Agency (IRENA) has ranked as the largest green hydrogen programme in the world.

The hydrogen produced at the HyDeal España hub already has guaranteed offtakers, with steel maker ArcelorMittal and fertiliser producer Fertiberia backing the project as well as Spanish natural gas company Enagas and green hydrogen developer DH2 Energy.

HyDeal España was officially incorporated as an industrial joint venture (JV) in November 2021 following a one-year prefeasibility study and will deliver green hydrogen to an industrial complex in Asturias, Northern Spain.

ArcelorMittal and Grupo Fertiberia – “together with other large hydrogen clients set to join the project” – plan to purchase 6.6 million tonnes of renewable hydrogen over 20 years to produce steel, ammonia, fertilisers and other industrial and energy products.

“HyDeal España is the first concrete implementation of the 1.5 €/kg green hydrogen system announced in February 2021,” said Thierry Lepercq, chairman of the JV and spokesperson for HyDeal Ambition.

Lepercq said green hydrogen was “now a full-fledged commodity, able to compete with coal, oil and natural gas in both costs and volumes”.

José Manuel Arias, chairman ArcelorMittal Spain, said the project “will be able to offer a supply, in competitive conditions, of hydrogen obtained using renewable energy sources, which will be key to enabling us to achieve our 50% CO2 emissions reduction target in our Spanish operations by 2030.”

Enagás’ CEO Marcelino Oreja said the company already participates in more than 30 hydrogen-related projects throughout Spain and that “HyDeal España is one of the most important”.

This year could be a tipping point for Europe’s green hydrogen sector, with a flurry of activity predicted if the necessary policy environment is achieved, according to research and consulting firm Delta-EE

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