The green hydrogen industry has been boosted with a new alliance between Iberdrola and Fertiberia, which seeks to turn Spain into an industrial leader of a technology that will be fundamental to delivering climate neutrality.
The partnership could see the installation of 800 MW of green hydrogen production capacity, with € 1.8 billion investment over seven years.
In the next year the partners will commission their first plant in Puertollano, becoming Europe’s largest green hydrogen complex for industrial use.
The partnership includes plans to develop three additional projects between 2023 and 2027, in the Fertiberia plants of Puertollano (Ciudad Real) and Palos de la Frontera (Huelva) which could deliver 40 times the capacity of the first plant.
“This great project that could turn Spain into the first country to obtain 100% of its ammonia production from green energy sources. An alliance that is not based on mere intentions, but on concrete actions. Once again, we are pioneering the implementation of a new clean technology, green hydrogen, and we are doing it together with the best partner, Fertiberia.”Ignacio Galán, chairman of Iberdrola.
The plan will invigorate an industrial hub with high growth potential, such as the manufacturing of electrolyzers in Spain. It reduces energy dependence and consumption of fossil fuels while promoting economic and social development, particularly in regions that face economic challenges such as Castile-La Mancha and Andalusia.
In 2021, Europe’s largest green hydrogen complex for industrial use will be operational in Puertollano, following investment of €150 million. The complex will comprise a 100-MW solar photovoltaic plant, a lithium-ion battery system with a storage capacity of 20 MWh and one of the largest systems for producing hydrogen by electrolysis (20 MW).
Its development and construction will generate 700 jobs. Once operational, it will prevent the emission of 39,000 tCO2/year.
Iberdrola is accelerating the construction of this innovation project and, in addition, has already submitted an application to the Innovation Fund for European aid.
The green hydrogen produced will be used in the Fertiberia ammonia plant in Puertollano. The plant is already one of the most efficient in the European Union, with a production capacity of over 200,000 t/year.
Fertiberia will adapt its plant to the use of green hydrogen for manufacturing green fertilizers, reducing the needs of natural gas in the plant by more than 10%. It will be the first European company in the sector to develop a large-scale experience in the generation of green ammonia.
The plant is being built in a privileged location, an important industrial hub which includes the National Center of Hydrogen that advised both companies during the process.
The contribution of electricity to energy consumption today barely exceeds 20% of the total and should grow three-fold in just 30 years if climate objectives are to be met.
The EU aims to have 40 GW of green hydrogen electrolyzers in just ten years, while in Spain the goal is 4 GW of installed capacity.