Via its subsidiary Quantum Hydrogen, Capital Energy announced the launch of its first green hydrogen plant in the Andalusia region.
It concerns Sierra Sur, a factory that will be situated in this Sevillian district and whose processing by the Sustainability Department of the Andalusian Regional Government has already started.
It will have 200 megawatts of electrolysis power on an eight acre area, according to Capital Energy. It will create green hydrogen, around 18,000 tons annually, but it will be primarily a factory dedicated to producing methanol, one of its derivatives. The objective is to provide a service to sea transportation, which uses methane as one of the essential components for its decarbonization, and to create 90,000 tons of this product each year, which is equal to 15% of Spain’s industrial consumption of this fuel.
One of the parts of Europe, Andalusia, has the ideal conditions for producing green hydrogen at a reasonable cost. And the reason for this is because solar and wind energy are combined in the area.
With the usage of facilities run by the company itself, Capital Energy predicts a 30% price decrease from the going rate. The entire amount of wind and solar power required to manufacture green hydrogen and methanol would be 200 MW, and according to Capital Energy, the plants’ names and locations have not yet been decided.
The business estimates that work on the green hydrogen factory in Seville’s Sierra Sur might start in the last quarter of 2024 and be completed by the end of 2026.
