Cespa (Madrid, Spain) has selected Siemens Energy AG (Munich, Germany) for the supply of 100 MW) of proton-exchange membrane (PEM) electrolysis technology for green hydrogen production at its La Rábida Energy Park in Palos de la Frontera (Huelva), southern Spain. Cepsa is developing 400 MW of green hydrogen production in Huelva as part of its wider plans for 2 GW of capacity by 2030 (1 GW in Huelva and 1 GW in Cádiz), one of the largest projects of its kind in Europe. The first phase of the plan is still pending Final Investment Decision.
The PEM electrolysis will complement the use of alkaline water technology that Cepsa has decided to implement for the remaining 300 MW of the project, which it is developing with partner Fertiberia. The decision to use both technologies is part of a multi-supplier approach to creating a European value chain for green hydrogen, an essential vector to decarbonize industry and heavy ground, air and maritime transport across the continent this decade.
Carlos Barrasa, Executive Vice President of Commercial and Clean Energies at Cepsa said: “Cepsa continues to execute important strategic agreements to develop the Andalusian Green Hydrogen Valley, enabling us to bring crucial green molecules to our customers as we support their decarbonization journeys. Produced at scale, green hydrogen can power Europe to a zero-carbon energy system. Through a combination of electrolyzer technologies, Cepsa can manage technology risk to ensure supply for our customers.”
Alexey Ustinov, Head of Sustainable Energy Systems at Siemens Energy, said: “We are delighted to be part of Cepsa’s ‘Green Hydrogen Valley’ project, as there will be no energy transition without green molecules. The industry is ready, production capacity of electrolyzers is no longer the bottleneck in ramping up the hydrogen economy. Our Berlin multi-gigawatt electrolyzer factory is a good example of this. But we need a faster pace of funding approvals and fewer technocratic hurdles to ensure that such projects can make their decisive contribution to decarbonization across Europe.”
The partnership brings together top German engineering and southern Spain’s excellent conditions to generate low carbon electricity. The green electricity required for the production process is to come from solar and wind energy, which is plentiful in southern Spain, making it one of the most competitive places in Europe for green hydrogen production. The region also has access to strategic ports, forming the basis for the maritime corridor that Cepsa has set up with partners to transport hydrogen between the South and North of Europe, ensuring decarbonization solutions across the continent.
As part of this new ecosystem, there will be opportunities to develop assembly capability for electrolysis equipment in Spain, generating employment and protecting Europe from exposure to shortages of key equipment and long lead times from competitive markets.