In Tarragona, Spain, a proposed green hydrogen facility backed by H2PRO and Sun Systems Group aims to connect renewable electricity generation with one of Europe’s largest industrial clusters, targeting the decarbonization of chemical and petrochemical operations.
The two companies have signed a memorandum of understanding to develop and operate a large scale green hydrogen production plant in Tarragona, with total investment expected to exceed €300 million. The project combines renewable power generation, electrolyzer deployment, hydrogen storage, and grid integration infrastructure, positioning the facility as part of Spain’s broader strategy to develop a renewable hydrogen economy.
The development is planned for land in La Boella, located within the wider Tarragona industrial area, with associated photovoltaic infrastructure expected to be built in Constantí. The site benefits from proximity to major transport infrastructure, including the AP 7 motorway, the T 11 corridor, rail connections, and Reus Airport, as well as its location near the Tarragona petrochemical complex.
Industrial proximity is a key factor in the project’s design. Unlike hydrogen projects focused primarily on future export markets, the Tarragona facility is intended to serve existing energy consumers that face significant challenges in reducing fossil fuel dependence. Chemical and petrochemical industries require continuous, high temperature energy inputs, making direct electrification more difficult in certain processes.
The first phase of the project will focus on an off grid green hydrogen production facility powered exclusively by solar energy. The initial electrolyzer capacity is expected to reach 25 MW, with annual hydrogen production estimated at approximately 1,250 tonnes. A second expansion phase is planned to increase capacity to 150 MW by 2032.
According to project plans, an intermediate stage reaching 50 MW capacity would increase annual hydrogen production to around 2,500 tonnes. The phased approach reflects a common strategy across the hydrogen industry, where developers attempt to balance long term scale ambitions with the current uncertainty surrounding demand, financing, and hydrogen pricing.
The investment structure includes approximately €150 million allocated to the hydrogen production facility and €154 million dedicated to photovoltaic infrastructure. The solar component is planned at 220 MW peak capacity, creating a direct renewable electricity source for hydrogen production.
The reliance on dedicated renewable power highlights both the opportunity and challenge facing green hydrogen development. Producing hydrogen through electrolysis requires large amounts of electricity, and project economics depend heavily on access to low cost renewable energy. While Spain has strong solar resources compared with many European markets, developers still face questions around electrolyzer utilization rates, electricity availability, and competition from other renewable energy users.
The project also highlights the growing importance of hydrogen infrastructure integration. Developers plan to connect produced hydrogen with Enagás’s national transport network while also supplying nearby industrial customers directly. This connection could become increasingly relevant as European hydrogen infrastructure develops through initiatives such as the planned H2Med corridor, which aims to connect renewable hydrogen production centers across Southern Europe with wider European markets.
Storage is another critical element of the facility’s design. The initial phase is expected to include less than five tonnes of hydrogen storage capacity, equivalent to several days of production. The site has reportedly been prepared for future expansion toward up to 40 tonnes of storage capacity, allowing operational flexibility as hydrogen demand grows.
For hydrogen projects, storage remains a technical and economic consideration. Hydrogen production from renewable electricity can fluctuate depending on generation patterns, while industrial customers often require consistent supply. Balancing these requirements requires careful coordination between renewable generation, electrolyzer operation, storage systems, and customer demand.
The Tarragona development is being advanced by H2PRO, an electrolyzer technology company with a portfolio of patented technologies and investment from several international backers. The company’s involvement reflects the broader effort to improve electrolyzer performance and reduce costs, two factors that remain central to the competitiveness of green hydrogen.
The project also comes during a period of reassessment for the hydrogen industry. While governments and companies continue to identify hydrogen as a tool for industrial decarbonization, many announced projects worldwide have faced delays due to uncertain demand, high capital costs, and difficulty securing long term offtake agreements.
