Acciona Energia, Plug Power JV plan 25-MW electrolyser in Spain

Spanish renewables company Acciona Energia (BME:ANE) and US hydrogen fuel cells specialist Plug Power Inc (NASDAQ:PLUG) are jointly developing a 25-MW electrolysis project in the region of Navarre, northern Spain, to produce green hydrogen for industrial and mobility applications.

Their Valle H2V Navarra (Navarre Green Hydrogen Valley) project is the work of the 50/50 joint venture (JV) AccionaPlug, which the companies set up in 2021 to pursue green hydrogen opportunities in Spain and Portugal.

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Acciona Energia said on Tuesday that they plan to invest EUR 87 million (USD 92.8m) to build the electrolyser, which will be located on land adjacent to Acciona’s biomass-based power plant in the city of Sanguesa. The electrolysis process will be powered by a 25-MW solar PV farm and a 24-MW wind farm.

All three sub-projects are currently in development, Acciona Energia said.

AccionaPlug expects the Valle H2V Navarra facilities to produce around 3,880 tonnes of green hydrogen per year. The plan is to deliver 90% of this output to energy-intensive industrial consumers in the area and use the remaining 10% to feed a hydrogen filling station at the same location.

Depending on future demand, capacity of the electrolysis plant could be doubled to 50 MW, according to the renewables firm.

AccionaPlug presented the plan to Navarre’s regional government, which promised to declare Valle H2V Navarra as the project of regional interest in a session on Wednesday. This designation speeds up the permitting process.

The JV partners expect to start producing green hydrogen by the end of 2024.

(EUR 1.0 = USD 1.066)