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Home Home - Hydrogen
Hydrogen

Untapped Hydrogen Production Potential of 1.6 to 1.9 Million Tons Annually

Anela DoksoBy Anela Dokso03/03/20253 Mins Read
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A recent analysis conducted in southeastern Spain reveals untapped potential for hydrogen production, with unoccupied industrial zones capable of generating between 1.6 and 1.9 million tons annually, translating to energy yields of 54.76 to 63.54 terawatt-hours. Such figures highlight a significant opportunity for the industrial sector, which stands as the largest consumer and emitter of CO2, responsible for 38% of total final energy consumption and 47% of related emissions, including those from electricity and heat.

With the European Union spearheading climate-neutral initiatives under the European Green Deal, the focus on reducing net greenhouse gas emissions by at least 55% before 2030 is paramount. Green hydrogen’s strategic importance is amplified by its potential to serve as a versatile energy vector, encompassing uses as a fuel, feedstock, and energy carrier. In Spain, where the reliance on fossil fuels is pronounced—169.7 terawatt-hours of gas were consumed by industry in 2023—the transition to hydrogen could mitigate energy dependence, especially considering the country’s near-total import reliance on natural gas.

Leveraging Geographic Information Systems and Analytical Hierarchical Process methodologies, the southeastern Spain study underscores crucial selection criteria for optimal hydrogen production sites. Proximity to the natural gas pipeline network is identified as the dominant criterion, weighing in at 44%. This proximity not only enhances integration but also mitigates distribution losses and costs—vital considerations amid competitive energy markets. Concurrently, the capacity of existing industrial rooftops to produce 18.2 to 21.2 kilotons of hydrogen annually, equating to between 0.61 and 0.71 terawatt-hours, further exemplifies the region’s infrastructural readiness for a green hydrogen transition.

The integration of high-resolution local data into this analysis addresses historical overestimations in hydrogen production forecasts, providing a more accurate framework for stakeholders to pursue investment and implementation strategies. This precision paves the way for industrial sectors to optimize site performance and align closely with both current energy demands and future climate regulations.

The promise of green hydrogen in Spain extends beyond environmental benefits. It underscores a strategic energy autonomy pivot, crucial for an economy heavily reliant on imported energy. The need for enhanced hydrogen networks dovetails with the broader EU decarbonization roadmap, offering a model that could be replicated globally. As stakeholders navigate the complexities of this energy transition, it remains essential to assess both the technical and economic feasibility of hydrogen production pathways, weighing them against established energy and climate goals.

Recognizing hydrogen’s multifaceted role in energy transition, Spain’s initiative can potentially reshape sectoral emissions profiles, curtailing reliance on legacy fuels. The decade ahead could see substantial shifts as technology, policy, and market dynamics converge to reshape the energy landscape with hydrogen at its forefront. While the opportunities are significant, the path to realizing this potential is paved with challenges that demand holistic policy frameworks, robust technological infrastructures, and sustained collaborative efforts across industries.

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