Miteco grants 200 million euros for 37 green hydrogen projects under the Perte program
Miteco has awarded a total of 200 million euros to 37 green hydrogen projects as part of the Perte program, which focuses on renewable energies, renewable hydrogen, and storage. The program is expected to mobilize an investment of over 16,300 million euros. In addition, lines 3 and 4 of the CdV program, with a total of 140 million euros, will be finalized in the coming weeks.
The 19 projects selected under the H2 Pioneers call for comprehensive initiatives of local hydrogen consumption in sectors of difficult decarbonization are located in Andalusia, Catalonia, Galicia, Asturias, Extremadura, Navarra, Castilla y León, Castilla-La Mancha, and Aragón. Five of the projects are located in Just Transition areas (35% of total grants) and five in Demographic Challenge areas (20%). The largest projects by amount are located in Asturias, Galicia, and Andalusia.
Another 18 projects submitted to calls 1 and 2 of the H2 Value Chain program have been selected to improve capacity in testing and manufacturing facilities, and the design of hydrogen-powered vehicles, respectively, totalling 11.9 million euros. These include the creation of facilities to manufacture electric and hydro stations, storage systems, or the development of test platforms for hydrogen technologies.
Underline 2 of CdV, 12 hydrogen-powered mobility projects have been awarded a sum of 37.52 million euros. These include the design and development of a BiModo train, new zero-emission engines for boats, and a propulsion system powered by liquid renewable hydrogen for air mobility, among others.
The Hydrogen Roadmap aims to reach an electrolysis capacity of 300 MW to 600 MW in 2024 and 4 GW in 2030, which is 10% of the Community target.
Europe’s first underground hydrogen deposit
Hydrogen is poised to become a major player in the global decarbonization effort, and Spain is taking a significant step toward making that a reality. The country is set to become the first in Europe to extract natural hydrogen, an element that accumulates in the depths of the Earth, which could position Spain as a major European supplier of sustainable hydrogen.
British Petroleum’s subsidiary, Helios Aragón PTE, along with Axion, plans to extract natural hydrogen and helium from two underground reserves located in the vicinity of Monzón and Barbastro in the Aragon region. The project proposes an investment of 900 million euros to begin extraction in 2028, which would create the first natural hydrogen centre in Europe, generating 300 direct and highly qualified jobs and 1,500 indirect jobs.
Natural hydrogen is not commonly found in its pure form on Earth, hence the nickname “golden hydrogen”. It is produced from other substances, which makes it scarce and sought after. Experts believe it could be available on the market at a very competitive price of 0.75 euros per kilogram, while green hydrogen, produced with surplus renewable energy, currently costs between 7 and 8 euros per kilogram.
The reserves in the Pyrenees cover an area of almost 90,000 hectares, of which Helios Aragón PTE has exploration permits for 60,200 hectares. The existence of natural hydrogen and helium was discovered during prospecting in May 2022 in the Monzón-1 well. The company plans to conduct a new prospection in a second well in 2024 if authorized.
While the discovery of natural hydrogen in Spain is exciting news, the project faces a significant obstacle due to current Spanish climate change legislation. Pure hydrogen is classified as a hydrocarbon under Spanish law, which prohibits the exploration and exploitation of hydrocarbons since 2021. However, Helios Aragón PTE proposes to include the exploitation of natural hydrogen in the Spanish Mining Law, a step that France has recently taken.
The extraction of natural hydrogen and helium will use traditional oil and gas production techniques, as they are light gases that do not need help ascend. Helios Aragón PTE has emphasized that hydraulic fracturing or ‘fracking’, banned in Europe and Aragon since 2012, is not necessary for extraction. The company believes that the environmental impact would be minimal, and the project would not visually resemble a mine. It would use the local economy to carry out the project.
The project is currently in its second phase, which runs from 2023 to 2024 and includes environmental assessment, well approval, an exploration well drilling, and resource confirmation. The company plans to invest 14 million euros in this stage, and only if the legislation allows the execution of the plan, will it make substantial investments of around 900 million euros to begin extraction.
In conclusion, Spain’s project to extract natural hydrogen and helium from underground reserves is a significant milestone in the quest for sustainable energy solutions. If successful, it could position Spain as a major supplier of sustainable hydrogen and create hundreds of jobs while contributing to the global decarbonization effort.
