Spanish energy company Cepsa and the Port of Rotterdam are working together to establish a green hydrogen corridor between southern and northern Europe.
The partners plans will help the development of a green hydrogen supply chain between two of Europe’s main ports, Rotterdam, in the Netherlands, and Algeciras, in Spain.
As agreed in a memorandum of understanding (MoU), Cepsa plans to export hydrogen produced at its San Roque Energy Park near the Bay of Algeciras, through hydrogen carriers such as ammonia or methanol, to the Port of Rotterdam.
Rotterdam handles 13% of European energy demand, while the Port of Algeciras is first in Spain, fourth in Europe, and an important trade route between Europe and Asia.
The supply of green fuels will help to decarbonise industry and maritime transport in the Bay of Algeciras and Rotterdam and to support the European Union’s RePower EU strategy, which seeks to guarantee Europe’s energy independence and security and stimulate the production of clean energy.
The trade lane is expected to be operational by 2027.
Cepsa also intends to develop a similar supply chain from its La Rábida Energy Park in Huelva, southern Spain.
Maarten Wetselaar, CEO of Cepsa, said: “The opportunity to build the first green hydrogen corridor in Algeciras, the leading energy port in Spain, demonstrates the unique role that Spain, and in particular Andalusia, will play in the energy transition in Europe.
Spain is ideally placed to become a world leader in the production and export of green hydrogen, given its strategic location, abundant generation of renewable energies, and its robust energy infrastructures and key ports, such as Algeciras and Huelva.
“Cepsa, the main energy company in Andalusia, intends to play a leading role in realising this vision.”
Under its Positive Motion strategy, Cepsa aspires to lead green hydrogen production in Spain and Portugal by 2030 with a production capacity of 2GW, half the target set by the Spanish Government.
To generate the renewable energy necessary for its production, Cepsa will develop a portfolio of 7 GW of renewable, wind and solar projects alongside working hand in hand with other renewable energy producers in Andalusia to promote the integration of these new plants into the electricity system.
Allard Castelein, CEO Port of Rotterdam Authority: “Northwest Europe uses far more energy thanit can produce in a sustainable way.
“We are therefore setting up multiple trade lanes for green hydrogen, together with exporting countries and private businesses all over the world.
“We expect that in 2050 some 20 Mton of hydrogen will flow through the port, of which only 2 Mton will be produced locally.”