On Wednesday, Spanish oil company Cepsa signed two agreements to ship green hydrogen between Spain and the Netherlands.
This was a day after renewable energy giant Iberdrola took a similar step.[1]
The two Spanish businesses have billions of euros in planned investments as they compete to lead the green hydrogen industry.
They can sell a portion of their anticipated production of green hydrogen and its derivatives to industrial customers in Germany and its neighboring nations.
Green hydrogen is created using renewable energy and is considered essential to the future decarbonization of Europe’s economy.
However, given its cost, green hydrogen projects, in general, are often only competitive with subsidies.
The partnership Cepsa signed on Wednesday with Yara Clean Ammonia, a subsidiary of Norway’s Yara International (YAR.OL), would assist in creating a green hydrogen maritime corridor between the Dutch port of Rotterdam and the Spanish port of Algeciras, which is close to Cepsa’s green hydrogen hub.
Cepsa is a subsidiary of the Mubadala sovereign wealth fund of the United Arab Emirates, they also agreed with Gasunie to use the Netherlands’s green hydrogen transportation network.
The Cepsa announcement follows Iberdrola’s move on Tuesday when it two agreements with the same goal: establishing a maritime corridor between Spain and the Netherlands.
Cepsa has pledged to invest 3 billion euros ($3.24 billion) in its flagship green hydrogen project in the Spanish region of Andalusia, the plan includes a 1 billion euro green ammonia plant.
On Tuesday, Iberdrola’s executive chairman Ignacio Galan said the company’s planned investments in green hydrogen top 3 billion euros.
This includes a 750 million euro plant in Huelva to produce green ammonia.
References
- ET Auto, ‘Spain’s energy firms look to central Europe markets for green hydrogen deals’, 14 June 2023, https://auto.economictimes.indiatimes.com/news/industry/spains-energy-firms-look-to-central-europe-markets-for-green-hydrogen-deals/100992029[↩]
