Last week, the European Investment Bank (EIB), the Instituto de Crédito Oficial (ICO), and Iberdrola announced an agreement in Luxembourg aimed at assisting the economy’s decarbonization by creating green hydrogen for industrial use, so contributing to EU energy security.
Iberdrola will receive 53 million euros from the EIB and 35 million euros from ICO for this purpose, with both loans recognized as green finance. The funding will be used to build one of Europe’s largest solar plants, a 20 MWh battery, and a green hydrogen production facility at Puertollano (Ciudad Real), Castilla-La Mancha (Spain). This is the first time the two groups have partnered to generate green hydrogen.
Green hydrogen will be able to replace grey hydrogen produced with natural gas in the fertilizer business near the facility.
The initiative will create green hydrogen and sustainable power. As a result, Castilla-La Mancha is contributing to long-term economic recovery and employment creation. During the construction phase, an estimated 300 jobs will be generated, and the new plant will generate roughly 160 GWh of electricity per year, which is similar to the yearly power consumption of 48,000 Spanish houses. Each year, the electrolyze will be able to produce 1,000 metric tons of green hydrogen.
