Spanish Firms Team Up for Green Hydrogen Push

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Two of Spain's biggest hydrogen producers and users, Fertiberia and Cepsa, have teamed up to promote decarbonising the industrial sector in Huelva, in southwest Spain.

The companies aim to drive the Andalusian Green Hydrogen Valley initiative in Huelva, one of Spain's largest petrochemical regions, which will include working together to produce green hydrogen and other renewable gasses. Industrial Info is tracking projects by both companies to develop large green hydrogen plants at separate sites. The alliance will see them work together on Fertiberia's ongoing project to create 1 gigawatt (GW) of electrolysis capacity at its Palos de la Frontera plant, which sits next door to Cepsa's La Rábida Energy Park. The green hydrogen, with production beginning in 2026, will be used for both companies' own industrial consumption, and will be used to help manufacture advanced biofuels, as well as ammonia, AdBlue and sustainable fertilizers.

Javier Goñi, chief executive officer of Grupo Fertiberia, said: "The union with Cepsa is very relevant, since it involves collaboration between two companies with the longest industrial tradition in the province of Huelva, and which represent almost all of the current hydrogen consumption of Andalusia. This alliance will promote the competitiveness of green hydrogen production in Huelva and will be a source of opportunities for multiple companies that will participate in the value chain. Additionally, it will reinforce the full decarbonization of our assets and our position as leaders in green ammonia and sustainable fertilizers".

Cepsa Chief Executive Officer Maarten Wetselaar added, "We have added a new strategic partner to the Andalusian Green Hydrogen Valley to continue promoting the decarbonisation of Huelva's industry and make it a benchmark in sustainability in Europe. This agreement with Fertiberia represents a great step in our commitment to green hydrogen as a key energy vector to decarbonise our own activity and that of our clients."

Fertiberia is one of Europe's leading fertilizer producers while Cepsa is a major Spanish oil and gas refiner, with its eye on the huge potential market for green hydrogen in Europe. It is aiming to invest 3 billion euro (US$3.3 billion) in green hydrogen projects in southern Spain. It is currently working on its own 1-GW green hydrogen project at its Campo de Gibraltar (Cádiz) refinery, also located in Andalusia. In recent weeks the company also inked a deal with a trio of Dutch companies, Gasunie (Groningen, Netherlands), Vopak (Rotterdam, Netherlands) and HES International BV (Rotterdam, Netherlands), to export green hydrogen to their planned ACE Terminal in the Port of Rotterdam. The proposed 100 million-euro (US$108 million) ACE Terminal project will use existing facilities at Maasvlakte, a massive extension of the Europoort port and industrial facility within the Port of Rotterdam, Europe's largest port. When commissioned in 2026 it will become Europe's largest green ammonia import terminal. For additional information, see April 26, 2022, article - Green Ammonia Terminal Planned for Port of Rotterdam.

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