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Green Hydrogen H2 News

Iberdrola Expands Green Hydrogen Portfolio with €750M Green Ammonia Facility

Anela DoksoBy Anela Dokso12/06/20232 Mins Read
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Spanish power company Iberdrola is making significant strides in the green hydrogen sector with plans to construct a €750 million ($808.05 million) plant for the production of green ammonia.

The ammonia will be purchased and exported by Trammo, an ammonia trader and shipper. Iberdrola, known as one of Europe’s leaders in renewable power and green hydrogen, aligns with Spain’s objective to establish itself as a dominant force in green energy.

Green ammonia is manufactured using renewable energy and can be utilized in its gaseous form or converted into green hydrogen. It serves various purposes, such as fertilizer production, transportation of green hydrogen, and potential applications as a marine fuel.

Millán García-Tola, Iberdrola’s green hydrogen chief, highlighted the significance of this deal and suggested that it could be the first of many similar projects. García-Tola stated, “Reducing industrial emissions with the supply of green ammonia presents opportunities in the coming years, and Iberdrola wants to be at the center of this market. We are already in talks with Trammo to explore similar projects in other markets.”

Green hydrogen initiatives often rely on subsidies to be economically viable. Iberdrola acknowledged that the new plant’s feasibility will be supported by European funding, for which it intends to apply. The construction of a 500-megawatt renewable energy facility will provide the necessary power for the plant.

While Iberdrola did not disclose the exact location, it stated that the plant would be the first green ammonia facility in southern Europe. The agreement with Trammo envisions the annual shipment of up to 100,000 tons of green ammonia from southern Europe to the northern region, commencing in 2026.

The construction of the plant is expected to generate up to 3,500 jobs, with an additional 50 jobs created for operations and maintenance.

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