Cepsa and fertiliser firm Fertiberia, two of Spain’s largest hydrogen consumers, have reached an agreement to decarbonise their production processes by jointly developing a large-scale renewable hydrogen plant in the country.
Under the agreement, Cepsa and Fertiberia have become strategic partners in the project to develop 1GW of electrolysis capacity in Palos de la Frontera as part of the Andalusian Green Hydrogen Valley.
This valley will have a 2GW capacity-1 GW in Campo de Gibraltar (Cádiz) and another in Palos de la Frontera (Huelva)-and production of up to 300,000 tonnes in Cepsa’s Energy Parks.
The agreement will meet the hydrogen and biogenic CO2 needs of both companies’ facilities in the industrial fabric of Palos de la Frontera (Huelva) in the most optimal way.
Green hydrogen production will begin in 2026, and it will be used for Cepsa’s and Fertiberia’s own industrial consumption while enabling the manufacture of advanced biofuels, ammonia, AdBlue and sustainable crop nutrition solutions.
Cepsa’s La Rábida Energy Park is adjacent to Fertiberia’s facilities in Palos de la Frontera.
Cespa chief executive Maarten Wetselaar said: “We are adding a new strategic partner to the Andalusian Green Hydrogen Valley to continue promoting the decarbonisation of industry in Huelva and make it a benchmark for sustainability in Europe.
“Our agreement with Fertiberia is a major step forward in our commitment to green hydrogen as a key energy vector to decarbonize our own activity and that of our customers.”
Javier Goñi, chief executive of Grupo Fertiberia added: “Our alliance with Cepsa is significant, as it implies a collaboration between the two companies with the longest industrial tradition in the province of Huelva and which account for nearly all the hydrogen consumption in Andalusia today.
“This alliance will make Huelva’s green hydrogen production more competitive, becoming a source of opportunities for multiple companies along the value chain.
“It will also further the full decarbonization of our assets and our positioning as a leader in green ammonia and sustainable crop nutrition solutions.”
As a part of their agreement, the two companies will also consider producing renewable fuels (green methanol and ammonia) in both Huelva and other provinces in mainland Spain.