Spain’s Competitive Edge in Green Hydrogen Production

Spain sees this energy vector as a strategic opportunity to establish itself as a European leader in the hydrogen economy.

However, the development of green hydrogen faces significant regulatory, technical, and economic challenges. These issues were highlighted during the recent “Hydrogen: The Great Energy Revolution” event, organized by EXPANSIÓN with the collaboration of Cepsa, Sedigas, and Tresca Engineering.

Experts at the event emphasized the importance of public-private collaboration for the successful development of green hydrogen. Alipio García, General Director of Energy Transition for the Government of Castilla-La Mancha, noted the region’s efforts to streamline administrative processes, provide regional incentives, and foster sectoral collaboration through a Hydrogen Cluster involving over 50 companies.

Despite the maturity of hydrogen technology, scaling it remains a challenge. Emilio Nieto, Director of the National Hydrogen Center (CNH2), estimated that large-scale facilities might be operational within the next two years, with widespread application taking four to five years or more. Gonzalo Pardo, Head of Energy Transition at Técnicas Reunidas, emphasized the need for patience and guarantees to clients regarding performance and timelines.

Quim Daura, Director of Active Energy Management at Schneider Electric, highlighted the importance of defining a national strategy and addressing key challenges and barriers. He pointed out that hydrogen will initially be competitive in sectors like refineries, fertilizers, and the chemical industry.

The economic viability of green hydrogen is closely linked to the cost of electricity. Spain has a competitive advantage due to its abundant solar and wind resources, which can lower hydrogen production costs to between 3 and 4 euros per kilogram. In contrast, production costs in northern Europe are significantly higher. Marta del Olmo, Head of Hydrogen Optimization and Modeling at Cepsa, noted that project scale and configuration are crucial to achieving competitive prices.