Cepsa and ACE Terminal work on Spain – The Netherlands green hydrogen supply chain

Cepsa and ACE Terminal have signed a Memorandum of Understanding (MoU) under which the Spanish energy provider will deliver green ammonia to the planned import terminal in Rotterdam, for end-use applications in industry after conversion of the ammonia back into hydrogen, or for direct end use in shipping and other industries in Northwest Europe.

In Andalusia, southern Spain, Cepsa is creating 2GW of green hydrogen at its two Energy Parks. With a 3 billion euro investment, the two hydrogen reactors will be a component of the Andalusian Green Hydrogen Valley, the biggest green hydrogen center in Europe, for which Cepsa recently inked a series of partnership agreements spanning the hydrogen value chain.

In order to establish ACE Terminal, a point of entry into the Netherlands for ammonia as a fuel for green hydrogen and a sustainable feedstock, Gasunie, HES International, and Vopak have teamed up. The open access terminal will be situated in Rotterdam, a port that is crucial for Northwest Europe in terms of energy. The ACE Terminal project has a quick time to market due to the planned reuse of infrastructure and assets. The MoU with Cepsa is the first of contracts intended to be made between other clients and the ACE open access hub terminal for the import of green hydrogen and ammonia.

In accordance with their Memorandum of Understanding, Cepsa and ACE Terminal will work together to develop a legally binding commercial deal that will make it easier to ship green ammonia over the ocean, redistribute it to hinterland end markets, and turn it into green hydrogen that can be used by customers in Northwest Europe. The ACE Terminal is perfectly situated to have direct access to Rotterdam’s industry, the proposed national hydrogen network, and the infrastructure leading into Northwest Europe.

Industry decarbonization

The alliance contributes to the decarbonization of industry and transport in the North and ensures energy independence, security, and affordability in Europe by importing green energy that Cepsa in southern Spain can produce cost-competitively due to factors like ample sun, wind, and land, a reliable electricity grid, and access to busy ports.

The partnership with ACE Terminal strengthens Cepsa’s agreement with the Port of Rotterdam to export hydrogen produced at its San Roque Energy Park close to the Bay of Algeciras through hydrogen carriers like ammonia, creating the first green hydrogen corridor between southern and northern Europe and guaranteeing a green hydrogen supply chain between two of Europe’s major ports, Rotterdam and Algeciras.

The first green hydrogen exports from Spain are expected to begin in 2027, which is on schedule with the ACE Terminal project.

Most significant energy port

While the Port of Algeciras is the first in Spain, fourth in Europe, and a crucial commercial route between Europe and Asia, Rotterdam is the most significant energy port in Europe, handling 13% of the continent’s energy consumption. The need to import green hydrogen on a significant scale arises from the fact that the future demand for green hydrogen in Northwest Europe will be greater than the capacity that can be produced locally from sustainable sources.

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