The Spanish oil company Cepsa has partnered with the gas grid operator Enagas and the renewable energy company Alter Enersun to develop a green hydrogen plant with an electrolysis capacity of 200 MW, in Huelva, Andalusia (southern Spain). The Huelva green hydrogen plant will be connected to a 200 MW solar PV power plant. It is expected to become operational in 2026 and its production will supply Cepsa's own industrial consumption.
The project is part of Cepsa's plans to invest €3bn in green hydrogen developments in Huelva and Algeciras. Cepsa’s Andalusian Green Hydrogen Valley project is the largest green hydrogen project in Europe, with a planned capacity of 2 GW and a production of up to 300 kt/year of hydrogen by 2030.
In 2020, Spain approved a plan to develop the green hydrogen sector, targeting around 300-600 MW of electrolysers by 2024 and 4 GW by 2030. In May 2021, the government announced a €1.55bn investment for green hydrogen production over the next three years.
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