Spain’s HyDeal Espana has made headlines for both its ambitious goals and its recent adjustments. This massive venture, once aiming to be one of Europe’s largest hydrogen initiatives, has undergone significant changes, including a drastic reduction in electrolyzer capacity targets and a delay in its operational timeline.
Scaling Back on Electrolyser Capacity
HyDeal Espana, initially poised to be a hydrogen powerhouse with 7.4 gigawatts (GW) of installed electrolyzer capacity by 2030, has decided to downsize its ambitions significantly. The new target, announced by HyDeal’s president Thierry Lepercq at the World Hydrogen and Renewables Iberia conference, is 3.3 GW by 2031. This shift signifies a departure from the original plan, resulting in a hydrogen output projection of 150,000 tons per year, down from the earlier goal of 330,000 tons annually.
Adjusting Renewable Power Assets
The adjustments haven’t stopped at electrolyzer capacity. Associated renewable power assets have also been scaled down. Instead of aiming for 9.5 GW of solar photovoltaic (PV) capacity by 2030, HyDeal is now targeting 4.4 GW by 2031. Additionally, the project’s start-up date has been postponed from the end of 2025 to 2028.
Lepercq provided limited insights into the reasons behind these alterations but mentioned a shift towards a more “pragmatic” approach following discussions with various stakeholders, including potential financiers, buyers, and supply chain partners. He noted that while the current plans are downsized, the long-term ambitions of HyDeal remain intact.
Customers and Collaborations
Fertiberia, a fertilizer producer, and ArcelorMittal, a steel manufacturer, have committed to purchasing a portion of the plant’s hydrogen output. However, HyDeal Espana is actively seeking additional customers and has partnered with Spanish gas system operator Enagas to facilitate future deliveries through Spain’s hydrogen backbone.
Cost Competitiveness and Spain’s 2030 Target
One of HyDeal’s primary objectives is to produce hydrogen at a cost of approximately €2.50 per kilogram, a price point that would enable it to compete with fossil fuels without subsidies. This aspiration aligns with broader industry trends, as renewable power and electrolyzer costs are expected to decrease with time and economies of scale.
While HyDeal’s revised plans may raise questions about Spain’s ability to reach its 2030 electrolyzer capacity target of 11 GW, it’s essential to consider the bigger picture. Even with these adjustments, Spain remains a significant player in the European green energy landscape. Spain’s Minister for Ecological Transition, Teresa Ribera, emphasized the country’s substantial pipeline of planned projects, totaling 16 GW in June. These projects, along with HyDeal Espana’s continued progress, underscore Spain’s commitment to a sustainable and hydrogen-powered future.
