Cepsa to create Europe’s largest green H₂ hub in Spain

Cepsa has announced an investment of more than €3 billion to establish the Andalusian Green Hydrogen Valley. The company will build two plants with a total capacity of 2 GW to produce green hydrogen. The plants, with 1 GW of capacity each, will be located in Palos de la Frontera (Huelva) and Campo de Gibraltar (Cádiz).

The Huelva plant will start up in 2026, reaching full capacity in 2028, while the Cádiz facility will be operational in 2027. Cepsa is already working on the engineering and administrative processing of the project.

The Andalusian Green Hydrogen Valley will produce 300,000 tons of green hydrogen per year, driving the decarbonization of Cepsa’s Energy Parks where it will produce advanced biofuels for aviation (SAF), and maritime and heavy land transport. Hydrogen will be particularly important for the production of by-products such as green ammonia and methanol, which will ensure that green marine fuels will be available in the main Spanish ports, helping to decarbonize maritime sector customers.

Implementing this project will save six million tons of CO2 emissions per year. Aside from replacing grey hydrogen in industrial processes, green hydrogen will also have a multiplier effect when used in the production of renewable fuels that will replace traditional fossil fuels.

To generate the renewable electricity needed to feed production of green hydrogen, Cepsa will develop a 3 GW portfolio of wind and solar energy projects with an additional €2 billion investment. The company will also collaborate with other renewable energy producers in Andalusia and the rest of Spain to promote the integration of these new plants into the electricity system.

Cepsa has also signed an agreement with the Port of Rotterdam to create the first green hydrogen corridor between southern and northern Europe, allowing the export of green ammonia and methanol.

During the presentation of this hub, held this morning at the San Roque Energy Park, Spanish Prime Minister Pedro Sanchez said: “This investment will help Spain achieve its goal to become an energy exporting country, with the first European green hydrogen corridor between the Campo de Gibraltar and the Dutch Port of Rotterdam. Andalusia has everything it takes to become one of the most competitive regions in the world for hydrogen production.”

Cepsa CEO Maarten Wetselaar added: “The Andalusian Green Hydrogen Valley is a groundbreaking project whose 2 GW capacity is 10 times bigger than the largest under construction in Europe today. The project produces green hydrogen at scale that can decarbonize industry, aviation, and heavy road and maritime transport in Europe for Europe.”

HTW Editorial Team

HTW Editorial Team

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