Spain will invest €1.5 billion ($1.8 billion) over the next three years from a European Union recovery fund to boost green hydrogen production.
Spain’s goal is to become Europe’s largest hydrogen producer, using renewable energy sources rather than fossil fuels, in order to reduce greenhouse gas emissions and generate jobs, Prime Minister Pedro Sanchez stated.
His government anticipates that the expenditure would spur 8.9 billion euros in investment, primarily from the private sector, to develop the technology by 2030. Madrid has already received over 500 offers for “green hydrogen” projects from energy companies, according to a government statement.
The development of “green” or emissions-free hydrogen is viewed as a critical step toward the development of sustainable energy sources and the reduction of carbon emissions. One reason for the high level of interest in hydrogen technology is that it emits only water vapour when used to power motors.
However, it is costly to create because the electricity required emits significant amounts of carbon dioxide or other pollutants. Green hydrogen is produced through electrolysis – an electrical current running through water — and is powered by wind, solar, or hydroelectric energy. Europe, in particular, is eager to have a hold on the novel and still expensive fuel, having missed the boat on China-dominated solar and battery technology.
According to experts, the cost of green hydrogen powered by renewable energy will soon decline to the point where it will be cheaper than natural gas in many locations. Cummins stated that it would invest 50 million euros in Spain to establish one of the largest electrolyser plants in the world for the production of green hydrogen. The factory, which will be built in Castilla-La Mancha’s center region, is scheduled to open in 2023.