Cepsa adds EDP to Andalusian Green Hydrogen Valley project in Spain

Portuguese utility group EDP Energias de Portugal SA (ELI:EDP) has joined Spanish oil major Cepsa on its project to build green hydrogen production facilities totalling up to 1 GW in Campo de Gibraltar, southern Spain.

The pair said on Monday that they have signed an agreement to study the joint production of hydrogen as part of Cepsa’s plan to develop the 2-GW Andalusian Green Hydrogen Valley in Spain’s southern region.

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Campo de Gibraltar is where Cepsa wants to realise one half of that plan, centering the green hydrogen facilities around the San Roque refinery it has there. EDP operates the Los Barrios coal-fired power plant in the neighbourhood and has separate plans for its dismantlement to make way for green hydrogen projects.

Under their agreement, EDP will supply renewable power for Cepsa’s green hydrogen plants, and there is also a possibility of collaboration on the production of sustainable marine fuels, the companies said in the joint announcement.

Cepsa’s EUR-3-billion (USD 3.27bn) Andalusian Green Hydrogen Valley project is based around two poles, one being its La Rabida refinery in Huelva province, and the other the San Roque site near the Bay of Gibraltar. Both of these facilities will be transformed into diversified energy parks to produce advanced clean fuels using native hydrogen and renewables as ingredients.

Last week, Cepsa announced the signing of partnership agreements with Spanish renewable gases company Enagas Renovable and green energy firm Alter Enersun, which will contribute to the La Rabida portion of the Andalusian Green Hydrogen Valley.

The ambition for the San Roque energy park also includes green hydrogen production for exports to northern Europe. To this end, Cepsa signed an agreement with the Port of Rotterdam to establish a corridor from the Bay of Gibraltar to the Netherlands.

(EUR 1.0 = USD 1.091)