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Spain – Government awards 794 million to seven renewable hydrogen industrial technologies and cluster projects of the IPCEI Hy2Use

Spain – Government awards 794 million to seven renewable hydrogen industrial technologies and cluster projects of the IPCEI Hy2Use

Spain – The government is allocating 794 million to seven industrial renewable hydrogen technologies and cluster projects of the IPCEI Hy2Use.

They will add an additional electrolysis capacity of 652 MW, powered by solar, wind and hydro energy, and will mobilise investments of more than €6 billion over their lifetime.

These are five hydrogen valleys and two innovative industrial applications, selected by the European Commission, in Andalusia, Aragon, Asturias, Castile-La Mancha, the Basque Country and the Region of Murcia.

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The government is stepping up its commitment to renewable hydrogen to replace fossil fuels and eliminate CO2 emissions from industry, heavy transport and other sectors that are difficult to decarbonise.

The Council of Ministers today, on a proposal from the Ministry for Ecological Transition and Demographic Challenge (MITECO), a Royal Decree to allocate and distribute 794 million euros in direct aid to the seven Spanish projects for the production and intensive use of renewable hydrogen in large-scale industrial activities selected by the European Commission within the framework of the Important Project of Common European Interest (IPCEI guideline) Hy2Use This is the second of the projects approved by Brussels within the strategic commitment to promote the industrial value chain of green hydrogen in the EU, from R&D to the production and use of this energy vector in the economic and productive activity sectors that are most difficult to decarbonise.

Five of the beneficiary initiatives concern the construction of high-capacity electrolysers – of 100 MW or more – in environments with high industrial activity, such as ports and other industrial complexes, forming integrated clusters or valleys located in Andalusia, Asturias, Castilla-La Mancha, the Basque Country and Murcia. They are part of the Technology Field 1 line of the IPCEI Hy2Use, aimed at promoting renewable hydrogen.

The other two Spanish IPCEI Hy2Use proposals will be implemented in Aragon and foresee the launch of two projects for the generation of renewable hydrogen for use in the production of fertilizers and other chemical compounds. They are part of the Technology Field 2 line, which aims to facilitate the technological replacement of fossil fuels in industrial sectors.

DIRECT INVESTMENT OF 1,141 MILLION

The Seven IPCEI’s Hy2Use projects will deliver a total of 652.2 MW of new electrolysis energy and are economically viable will immediately mobilize resources worth 1,141 million and leverage over 6,000 million in total investment over their lifetime .

The distribution of aid takes place using the NextGenEU funds from the Recovery, Transformation and Resilience Plan (Part 9 of the PRTR) and will be channeled through the Institute for Energy Diversification and Saving (IDAE), an organization dependent on MITECO, according to the following distribution :

PROJECT CCAA Electrolysis power Help M€ Beneficiaries
ES46 “See-Ammonia” Aragon (Teruel) 25MW 53 Fertinagro – IAM CAECIUS SL (EDP-Tervalis)
ES47 “Green H2 Los Barrios” Andalusia (Cádiz) 100MW 78 H2 Los Barrios SA (EDP)
ES48 “Asturias H2 Valley” Asturias (Aboño) 100MW 78 EDP
ES50 “Green hydrogen project in Magallón Aragon (Zaragoza) 7.2 MW 28 ENDESA – ENEL GREEN ENERGY
ES52 “Renewable hydrogen for the production of ammonia and green fertilizers” Castile-La Mancha (Ciudad Real) 220MW
Puertollano I 20 MWPuertollano II 200 MW
242 IBERDROLA
ES53 “Large scale electrolyzer in Bilbao” Basque Country (Muskiz, Bizkaia) 100MW 160 Hydrogen from the Bay of Biscay (Petronor/REPSOL)
ES54 “Cartagena large-scale electrolyser” Murcia (Cartagena) 100MW 155 Cartagena Hydrogen Network SL (REPSOL)
TOTAL: 652.2 MW €794M

The public financing of the seven projects will enable us to continue building a solid renewable hydrogen economy both at Community level and in Spain, in order to accelerate the decarbonisation process and become industrially competitive in the global deployment of renewable energy sources, where our country can confirm its international leadership position.

FIVE VALLEYS OF RENEWABLE HYDROGEN

The five projects related to the development of valleys or clusters supported by this Royal Decree integrate the production of large-scale renewable hydrogen with its transformation and consumption in industrial centres close to the electrolysis plant in intensive activities within the sectors mentioned earlier. They all involve direct delivery to nearby industrial consumers via hydroducts and eventually also by road.

More specifically, Green H2 Los Barrios will supply the generated renewable hydrogen to the steel mill and chemical plant located near the production. Asturias H2 Valley will in turn supply the hydrogen produced for use in, among others, the cement and steel plant approximately 3 km away and in the industrial centre of Avilés.

In the Renewable Hydrogen project for the production of ammonia and green fertilizers in Puertollano (Ciudad Real), the local fertilizer company, will be the main consumer of the hydrogen obtained. In the Bilbao large-scale electrolyser, the electrolyser is co-located with the main consumer of hydrogen, Petronor’s own refinery in Muskiz, Bizkaia. And as for the Cartagena large-scale electrolyser Under the proposal, most of the hydrogen production will be for the refinery’s own consumption in Cartagena.

The ultimate goal of this integration into clusters is to facilitate the decarbonisation of high-impact industrial processes by replacing all or part of the grey hydrogen used with green hydrogen obtained from photovoltaic solar energy, wind energy and hydraulic energy, as appropriate. Preliminary calculations estimate that more than 17,000 tonnes/year of fossil hydrogen will be replaced by renewable molecules in these five projects.

APPLICATIONS IN THE CHEMICAL INDUSTRY

The two projects being set up in Aragon concern the direct industrial application of hydrogen in the chemical sector. Ver-Amonia initiative in Teruel will develop an integrated electrolysis plant with a capacity of 25 MW, powered by renewable sources, which will produce 15,000 tons/year of green ammonia as fertilizer.

Concerning the Green hydrogen project in Magallón (Zaragoza), the plan is to install and operate a 7.2 MW electrolyser with two different configurations to be tested. The electrolyser will share a site with a photovoltaic plant and a wind farm, and the hydrogen produced will be transported by truck.

SECOND IPCEI OF HYDROGEN

After the first IPCEI approved by the European Commission, Hy2Tech focused on the development of technologies related to renewable hydrogen, and funds were also allocated to Spanish companies. This IPCEI Hy2Use for the decarbonisation of industrial processes has been developed by 13 Member States : Austria, Belgium, Denmark, Slovakia, Spain, Finland, France, Greece, Italy, the Netherlands, Poland, Portugal and Sweden, with Norway included in the framework of the European Free Trade Association.

Its purpose is to ensure the development of a renewable and low-carbon hydrogen market by supporting the construction of hydrogen-related infrastructure in particular large-scale electrolysers and transport infrastructure, as well as the development of hydrogen technologies in several industrial sectors. According to Member States’ estimates, this IPCEI will contribute to the creation of a total of around 26,000 direct jobs during its implementation. At Community level, the project represents 3.5 GW of electrolysis capacity, of which 0.65 GW corresponds to the Spanish projects envisaged in the Royal Decree.

RENEWABLE HYDROGEN, A NATIONAL COMMITMENT

The Royal Decree approved today emphasises that Spain’s participation in this IPCEI, in particular through projects identified as strategic by the European Commission, has a positive impact on the future of the region. a unique opportunity to position national industry in the competitive race for renewable hydrogen where other countries in our area are already investing heavily.

The financing of IPCEI projects is part of the Government commitment to renewable hydrogen as a key factor in eliminatingCO2 emissions from industry, heavy transport and other difficult-to-decarbonise sectors, and in line with the development of the PERTE for Renewable Energy, Hydrogen and Storage (ERHA).

In addition to the allocation of funds to the two IPCEI waves launched by Brussels, MITECO has so far handled seven calls for PRTR assistance through IDAE (in the H2 Pioneers and H2 Value Chain programmes) for the creation of a technological and industrial ecosystem for green hydrogen. In total, more than 1,330 million have already been committed to more than fifty projects developed throughout Spain. The draft regulatory bases for the call for aid for the creation of new valleys or hydrogen clusters that will be launched soon have also been submitted to a public hearing and information.

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Spain – The government is allocating 794 million to seven industrial renewable hydrogen technologies and cluster projects of the IPCEI Hy2Use. Source