Repsol cancels 130MW green hydrogen plant in Puertollano citing economic difficulties

Spanish chemical/oil firm Repsol has cancelled its 130MW green hydrogen plant in Puertollano, Ciudad Real, after finding it “technically and economically unfeasible”.

It confirmed that it will not continue with the development of the project Hydric following feasibility studies and preliminary work ahead of a final investment decision (FID), which had not been taken yet.

The project planned to start with a 30MW electrolyser, aiming to produce 4,500 tonnes/year of green hydrogen, with the potential to scale up to 100MW in later phases.

Hydric had secured EUR10 million in government funding and had already initiated public consultations in Castilla-La Mancha.

The hydrogen produced was to be transported via pipeline to Repsol’s refinery in Puertollano, a strategic complex within its industrial network. However, the cost of implementation and technological challenges have been insurmountable barriers at the present time, the company says.

Repsol adds that it will continue to focus on innovation and the decarbonisation of processes through other alternatives. Active projects include the biodiesel plant, the development of advanced polymers, chemical recycling, and new photovoltaic installations.

Puertollano remains a hub of hydrogen industry development, with steelmaker Hydnum Steel planning to build a 1.5 million-tonne hydrogen-based steel plant between 2026 and 2029.