Chinese company Hygreen Energy, headquartered in Beijing, has announced plans to build a 5GW alkaline electrolyser factory in Spain as part of a €2bn ($2.2bn) European expansion effort. The company will construct the facility in Malaga, ensuring it meets European compliance standards.

The Malaga facility will have a planned capacity of 5GW, though actual capacity will depend on Hygreen’s growth and European market demand. Specific details regarding the factory’s operational timeline and initial capacity were not disclosed.

This initiative complements Hygreen’s existing 2GW manufacturing capacity in Shandong, China, which is also set to expand to 5GW by the next year. Alongside this, Hygreen aims to develop large-scale green hydrogen plants in partnership with strategic collaborators in Huelva, Spain, although no specific partners have been named yet.

Cepsa, Iberdrola, and Fertiberia are planning to establish the Andalusian Green Hydrogen Valley in the region, highlighting Spain’s growing significance in green hydrogen production. Hygreen also plans to launch an R&D program to advance electrolyser technologies, including a 10MW alkaline system, further cementing its foothold in the European market.

These moves go beyond Hygreen’s recent collaborations with Coxabengoa, Voltan, and Kemtecnia, designed to create a comprehensive ecosystem for the company’s electrolyser customers and project developers.

“By setting up an electrolyser factory, an R&D program, and green hydrogen plants, Hygreen Energy will be strategically positioned to benefit from the expanding hydrogen market in Europe,” stated Hygreen Energy CEO, Benny Wang.

Hygreen emerged in June as the global brand of Beijing SinoHy Energy Co., founded in 2007 with the goal of becoming a leading international electrolyser manufacturer. The company has outlined plans to establish bases in Spain, Canada, Dubai, and more.

According to Ethan Hugh, Hygreen’s Global Marketing Director, international markets are expected to surpass domestic demand by 2025, driven by policies and incentives in regions like North America, Europe, and Australia.

Spain, as one of Europe’s main green hydrogen hubs, plans to build 11GW of electrolyser capacity by 2030, with the goal of supplying industrial regions in Europe’s northwest with substantial volumes of green hydrogen.

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