The Canadian Pension Plan Investment Board (CPPIB) and Ekhi Energy have announced a significant investment in a green hydrogen project in Saceruela, Ciudad Real.
This venture, named Erasmo Power2X, aims to transform a large photovoltaic project into an energy hub centered on green hydrogen production, targeting the industrial sector in Puertollano.
Erasmo Power2X, led by CEO Bas Dekker, plans to establish a 1,200 MW photovoltaic park, a 70 MW battery storage facility, and a 650 MW hydrogen plant with an annual production target of 55,000 tons of green hydrogen. The integrated self-consumption model without surpluses is designed to ensure a lower cost of renewable energy, thereby making green hydrogen competitively priced.
To facilitate this project, Erasmo Power2X has entered into a Collaboration Agreement with Enagás Infraestructuras for constructing a 60-kilometer hydrogen pipeline connecting the project to the Puertollano Industrial Complex. This connection is part of the hydrogen backbone network under development by Enagás, a critical component for supplying the industrial hub. Additionally, a feasibility study conducted with Veolia has confirmed the viability of the water resource, and plans are in place to construct a new substation on the 400 kV line of “Valdecaballeros-Brazatortas-Guadame” as part of the Electric Energy Transmission Network planning for 2025-2030.
Dekker emphasizes that Erasmo Power2X’s approach differs from traditional electricity companies as they focus exclusively on the energy transition without diversifying into other businesses. This singular focus, according to Dekker, positions them uniquely to lead the green hydrogen transition by combining traditional economic structures with new actors in the sector.
The regulatory environment and financial incentives are crucial for the project’s success. Dekker notes the need for greater collaboration and strategic commitments to ensure the sector meets its ambitious targets. The project’s reliance on upcoming aid from the European Hydrogen Bank underscores the importance of supportive financial frameworks. However, the financial impact and sustainability of such large-scale investments must be carefully managed to avoid potential pitfalls.
From a technological standpoint, the project’s integration of photovoltaic energy, battery storage, and hydrogen production represents a comprehensive approach to renewable energy utilization. However, the technological complexities associated with green hydrogen production, storage, and transportation must be meticulously managed. Environmental considerations, including the sustainable management of water resources and the ecological impact of large-scale infrastructure projects, also require careful attention.
