HyDeal Spain consortium, composed of HyDeal Ambition, ArcelorMittal, Fertiberia, Enagás, Soladvent, and DH2 Energy, concludes a crucial agreement on the long-term price at which it will supply new clean energy to the conglomerate’s two main customers, the ArcelorMittal and Fertiberia plants in Asturia, and, upon request, the viability of one of the most important Asturian industries.
Consortium sources say this is the first EU large-scale renewable hydrogen supplier-customer deal. The definitive and binding investment contract depends on the agreement, which must guarantee HyDeal’s profitability and the availability of green hydrogen at a competitive and profitable price for partners and customers. It will solidify early next year.
The $7,000 million investment in solar hydrogen production in Castilla y León and its transport via the hydrogen pipeline to Asturias has advanced in several areas: engineering has been ongoing since May (entrusted to Técnicas Reunidas, VINCI Construction Cobra IS, Power China Guizhou Engineering and cooperation with TAF), the holding has reached the first financing agreements with three banks, and it has guaranteed the availability of the first financing. 6,000 hectares ensure supply for the first phase.
The partnership is now negotiating supply price negotiations in Castilla y León and Aragon, in addition to managing permits, licenses, and other procedures. HyDeal will sell ArcelorMittal and Fertiberia’s Asturian factories 6.6 million tons of renewable hydrogen over 20 years.
With more than 370,000 million individuals mobilized through President Biden’s Inflation Reduction Act’s easy administration support, tax credits, and faster process than Next-Gen European funding, it challenges fledgling European projects.
The EU DG Competition closed the open case on state aid requested by ArcelorMittal for the partial decarbonisation of Asturias plants a week ago and transferred documents to the European Commission, which now needs to make the final judgment, which is expected to take a year and a half. which raises well-founded hopes for a positive decision that will release ArcelorMittal’s more than €1,000 million investment in Veriña, the factory, HyDeal’s 7,000 million investment in carbon-free hydrogen distribution, and Trasona’s ambitious decarbonization and expansion plan of the Fertiberia plant (Corvera).
Government support for the ArcelorMittal proposal will gradually speed all ongoing regeneration of greenhouse effect emissions-intensive production processes in central Asturias, encouraging the HyDeal process and enabling additional prospective industrial and transport clients. EDP and Enagás, sponsored by Hunosa, Duro Felguera, Nortegás, and Alsa, produce hydrogen in Asturias. Ignis and Naturgy.
By 2030, the EU wants the region to create 10 million tons of carbonless hydrogen. To generate twice as much, which industry says will require over 500,000 million euros in expenditure.
In September, European Commission President Ursula von der Leyen announced the creation of a European Hydrogen Bank, promising 3,000 million euros and more vigilant support.
Green hydrogen projects can compete with natural gas and hydrogen variants like blue due to photovoltaic panel prices falling 20% in two years.
The government and Enagás recommended the HyDeal project to the European Union. Community interest in the mainline design of the core hydrogen pipeline network (which in 80% of cases will reuse the existing gas pipeline structure) is another reason. Enagás will start with the Huelva-Gijón axis, which coincides with HyDeal’s initiative (between Castile y Leon and Asturias). EDP, Enagás, Ignis, and Naturgy hydrogen poles in La Robla and Gijón. The mainline network will feed Asturias industry and export hydrogen from El Musel. This vertical axis will start in Gijón and go via the eastern Cantabrian Sea to the Mediterranean corridor and H2Med subterranean tube via the Ebro valley between Barcelona and Marseille in France. After Berlin joins Spain, Portugal, and France’s Barmar project, he’ll go to Germany.
HyDeal is connecting with Morocco and Mauritania. It signed a deal with the European Investment Bank (EIB) on December 22 to investigate producing 50 million tons of hydrogen per year in North Africa by 2035.
Spain aims to have 9.5 gigawatts of solar power and 7.4 gigawatts of electrolyzers and produce 150,000 tons of hydrogen by 2025 or 2026 and 330,000 tons by 2028.
HyDeal believes timeframes are doable, even though the schedule is fair (because to the delay in processing ArcelorMittal’s European decarbonization request for State aid).
ArcelorMittal’s blast furnace “A” expires in 2024, and the steel industry has requested a $450 million public subsidy to replace it with an iron ore direct reduction furnace (DRI). EC decision. ArcelorMittal is considering using natural gas or syngas from organic materials until HyDeal’s hydrogen flows from Castilla y León to Asturias.
At the beginning of 2024, when the final investment decision is expected, the consortium expects all permits for hydrogen flow and supply, supply contracts for electrolysers and solar panels, engineering hydrogen pipelines (for which Enagás is responsible) and production (entrusted to six engineering firms held by HyDeal), land, impact studies, environmental permits, and others. The provider will conclude the Asturias electrolyzer factory after negotiating the supply contract.
Asturias is poised to join the clean energy and industrial revolution of green hydrogen startup. Asturias, which led the first and second industrial revolutions, may feel threatened by Spain’s new vista more than any other province. energy and industrial decarbonization could lead the challenge and opportunity. If the projects succeed, Asturias may be able to join the new era of the iron and steel and fertilizer industries, which, among other sectors, have been called upon to modernize their technological bases and are significantly polluting. carbonless hydrogen’s new energy paradigm. As a significant energy consumer, it will do so in the community (EDP projects, the alliance of Hunosa, Alsa, Duro Felguera, and Nortegas, and the Naturgy and Enagás project) and as a plateau hydrogen producer (HyDeal). for industry and transport in the transition to clean technologies (the state of Alsa and its alliances), as an electrolyzer manufacturer (Nordex project and the project HyDeal plans to attract some of its suppliers), as an export hub (El Musel), and as a manufacturer of solar, wind, and soon offshore wind equipment. Asturias can finally integrate its industrial status and desire with the promise of a “natural paradise”.