Cepsa to develop 2 GW green hydrogen hub in Spain

Cepsa to develop 2 GW green hydrogen hub in Spain

Spain’s Cepsa will start up two new plants with total capacity of 2 GW producing up to 300,000 tonnes of green hydrogen at two new plants in Campo de Gibraltar (Cádiz) and Palos de la Frontera (Huelva). Known as the Andalusian Green Hydrogen Valley, and the largest green hydrogen hub in Europe in southern Spain, it will help decarbonise industry and heavy land, air, and maritime transport, reducing CO2 emissions by 6 million tonnes, adds the firm.

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.

To generate the renewable electricity needed to feed production of green hydrogen, Cepsa will develop a 3GW portfolio of wind and solar energy projects with an additional EUR2 billion investment. The company will also collaborate with other renewable energy producers in Andalusia and the rest of Spain to promote the integration of these new plants into the electricity system.

  • The project will strengthen Spain’s ambition to lead the energy transition and guarantee an independent energy supply for Europe
  • 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 decarbonise 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
  • This is the biggest milestone Cepsa has achieved thus far as part of the development of its Positive Motion strategy and represents 50% of the green hydrogen production planned by the Government for the whole of Spain by 2030

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